The Indian software market registered a stable year-on-year growth of 10 percent in the second half of 2014 owing to the steady double-digit growth of top vendors, according to the International Data Corporation (IDC).
"The Indian software market registered a stable year on year growth of 10 percent. However, the market is expected to gain a steady momentum starting 2016 and beyond as deals would have closures and implementation would start," IDC said on Thursday.
It stated that some of the reasons for the stable growth include a steady double digit growth for the top vendors such as SAP, Microsoft, Oracle and the likes.
"More investments are expected to pour in from sectors such as government, manufacturing and retail among others."
The Indian IT Software market is segregated into three primary markets which include Application Development Deployment (AD&D), Applications and System Infrastructure Software (SIS).
The total AD&D market grew by 9.5 percent year-on-year while applications market pegged a growth of 10.8 percent year-on-year and SIS market grew by 8.5 percent during the second half of calendar year 2014.
Some of the secondary markets that registered a strong growth during the review period include application platforms, content, operations & manufacturing applications and integration & orchestration middleware among others.
"Some of the larger software vendors restructured their organization in line with the emerging technologies and re-aligned their strategies to capture the mindshare in the growth markets such as SMB, cloud, analytics and mobility. This has worked quite well for them and they have managed to grow inspite of the uncertainty in the market," Shweta Baidya, senior market analyst of software, IDC India said.
"Application developers are becoming a strong part of the larger ecosystem and vendors are working closely with the developer and partner community to offer best-in-class solutions to their target customers."
It stated that Microsoft, Oracle, SAP, IBM and Synopsys retained their dominant position in the market collectively cornering more than 60 percent of the total share.
IDC expects the software market to grow at a healthy pace in the next five years (2015-2019) with a compound annual growth rate (CAGR) of 10.6 percent.
Some of the software categories that will trigger the uptake include mobile applications, in-memory analytics, database security and privacy, open source applications, DLP, encryption, application security among others.