Major growth predicted for Indian software market

The Indian software market is predicted to see major growth in the next year.

A study by Gartner estimated that the market will hit $5.3 billion in 2016, a 12.8 percent rise from 2015.

The research firm identified several technology trends that are driving the expansion of the software market in the country, including the increased use of software-as-a-service, open source software and digital business practices and higher demand for specialized software vendors that can create cutting-edge products.

"The enterprise software marketplace is dynamic and ever-changing. Its growth and structure are being shaped by factors and forces of decentralized purchasing, consumerization, mobility, influence of other emerging markets, cloud-based implementations, and new consumption models," said Gartner research director Bhavish Sood.

The market has seen a boom in foreign direct investment. In 2015, FDI grew 27 percent year-over-year to total $30.9 billion in 2015.

Sood attributed the increase in FDI to greater efforts by the government to improve the ease of doing business. He also cites several programs that use technology to improve the effectiveness of governance in the country, such as the MyGov citizen portal, the Self-Employment and Talent Utilization program for startups, the Digital India initiative and other smart cities programs.

The Digital India initiative aims to "transform India into a digitally empowered society and economy," according to its website. It is focused on three main areas: Digital Infrastructure as a Core Utility to Every Citizen, Governance and Services On Demand and Digital Empowerment of Citizens.

The Business Standard noted that several major technology companies like Microsoft and NTT Technologies recently created data centers in India, and that Microsoft has been focusing on working with small- and medium-sized businesses in the country. - See more at: