Packaged software services gain ground in India

Package implementation is gaining traction among Indian software companies and has started to account for a significant percentage of a firm’s overall revenues. Also, the breadth of services offered is increasing rapidly, feel industry experts.

A cursory glance at the Q4 revenue break-up of IT major Infosys clearly points towards the growing strength of package implementation. Currently, it accounts for 14.1 percent of the company’s total revenues, as compared to 11 percent a year ago. Thereby, indicating a steady increase in revenues from this service.

“Package implementation is a sweet spot for Indian software firms. Typically, the billing rate is far higher than application maintenance and development. There is a resurgence in the enterprise resource planning (ERP) market, which has provided a boost to packaged implementation services,” says an industry consultant.

Companies like Satyam Computers are also seeing good prospects in the niche. An early entrant into the field, Satyam has 1,000-strong team focusing on SAP alone. ERP-based packaged implementation accounts for 20 percent of the company’s revenues, according to sources familiar with the development.

“Indian service companies are able to combine technical expertise with business knowledge. This is a potent combination, while providing package implementation services,” adds the consultant.

Firms like Cognizant also have strong package implementation practices. “We have more than 500 professionals working on packaged software co-development, implementation, maintenance, upgrade and support. Mid-sized firms like Polaris are also seeing traction in package implementation. “SAP and Oracle practice is looking up,” says a Polaris spokesperson.

— The Financial Express