Bangalore: India software revenue totaled $4.765 billion in 2013, a 10 percent increase from 2012 revenue of $4.334 billion, according to Gartner, Inc.

“The Indian software industry is in the middle of a multiyear cyclical transition as organizations are focusing investments on technologies to support existing system structure,” said Bhavish Sood, research director at Gartner. “Organizations are doing this in order to maintain competitiveness, while still taking advantage of cloud/subscription-based pricing where it makes sense to grow and advance the business.”

There is a shift in vendor rankings from 2013 at the top of the worldwide and India software market. This is the first time in Gartner’s India software market share research that Oracle has ranked second in terms of total software revenue with approximately $505 million in 2013, capturing 7.3 percent of the market (see Table 1). “Trends around business intelligence and analytics, with increasing customer investments in database management systems, helped to drive Oracle’s top-line growth,” Mr. Sood said.

Table 1. Top 10 Worldwide Software Vendors, India, 2012-2013 (Millions of Dollars)

2013 Rank	2012 Rank	Vendor	2013 Revenue	2012 Revenue	2012-2013 Growth (%)
1	1	Microsoft	957.3	865.9	10.6
2	3	Oracle	504.6	415.2	21.5
3	2	IBM	446.6	417.9	6.8
4	4	SAP	324.3	326.0	-0.5
5	5	VMware	94.4	82.4	2.0
6	6	CA Technologies	52.7	57.2	-8.0
7	7	Adobe	42.5	43.8	-2.9
8	8	SAS	23.6	22.9	3.0
9	9	HP	48.0	48.0	1.0
10	10	Others	2,271.4	2,054.6	10.6
		Total	4,765.4	4,334.0	10.0

Source: Gartner (April 2014)

Among the BRICS (Brazil, Russia, India, China and South Africa), the India software market experienced the highest growth rate (see Table 2) . Besides large enterprises, the Indian market also boasts a large potential small and midsize business (SMB) segment that is playing a crucial role in changing the consumption patterns of technology. SMBs are on the threshold of leveraging ICT, but they currently lack the scale, and in some cases experience, which is inevitable in understanding and handling technology-related issues.

Table 2. BRICS Software Spending Growth Rate, 2012-2013

Country	2012-2013 Growth Rate(%)
Brazil	7.8
China	7.0
India	10.0
Russia	8.9
South Africa	6.3

Source: Gartner (April 2014)

“India is growing faster than other emerging countries, which can be attributed to an export-oriented focus over the last decade. However, recent advances in IT communications infrastructure in the country has opened up new avenues for local consumption of IT software and associated services,“ said Mr. Sood. “Although there is an economic slowdown, Indian enterprises are still judiciously investing in technology that can be tied to the business objectives and impact their bottom line. Indian enterprises are generally more price-sensitive compared with enterprises in mature markets, but now they are spending on technology that offers a significant upside in terms of agility or productivity gains with diligent planning.”