Why have the Indian software product companies failed to emerge as prominent as their service counterparts?
While revenue is related linear growth in manpower in an IT service company, the product company is not constrained by such relationship. Its revenues can grow geometrically or even exponentially compared to its manpower growth. A product driven solution is much more attractive than developing the same solution through a specific project. The customer’s investment is well protected since technological changes are taken care off by upgrades. Comprehensive, customised, user-friendly products can be made. What about the revenues? The cost of a product driven solution is much more attractive than developing the same solution through a specific project.