Eight Golden Rules for the Indian Market
Yet as many software vendors have experienced success entering India, many others have made time-wasting missteps. For software companies entering the Indian market today, there are 8 Golden Rules to follow to ensure success. These rules are based on experiences of companies which have already entered the Indian market and have been successful in their endeavor.

Rule 1: Start Early. The mistake most companies make while entering the Indian market is that they delay their market entry until they feel that the Indian market can give them substantial returns. Successful companies have been those who have had the foresight and perseverance to enter the Indian market early. Indian customers by nature need comfort that a company is in India for the long run and only when a consistent presence is established, do they then adopt the company's products.

Rule 2: Have a Long-Term Vision. Companies must take the long view in India. The typical time horizon for success must be between 3-5 years. The India initiative must have strong backing from the corporate headquarters and reporting must be to the VP of emerging markets or a similar role.

Rule 3: Establish a Direct Presence. Having an Indian distributor does not count as entering the Indian market. Distributors in India do not do market development nor do they help in positioning the company. The company must conduct market development and brand communication for themselves in India via a direct in-country presence.

Rule 4: Fund Market Development. To achieve good reach, awareness and market presence, software companies entering India must assign a "Market Development Fund" with an 18-24 month payback period. The fund will be used for marketing "air-cover" and local headcount. Indian CIOs give credence to strong brand/company identity.

Rule 5: Find the Right Messaging. Product and technology adoption in India lags behind that of the U.S. (Fifteen-inch monitors and Windows 98 are still popular in India, for example.) There are also regional skews within India making it seem like multiple markets. Given the lag in product and technology adoption, the right messaging can make the difference. Therefore appropriate, localized, relevant messaging is the key to effective marketing.

Rule 6: Leverage Pricing. Software marketers can use pricing as a powerful weapon. In order to build volumes and overcome piracy, vendors should think unconventionally. Dramatic and innovative pricing models often deliver value and business sense for customers. Think 10,000 customers, not 1,000.

Rule 7: Forge the Right Partnerships. The right partnering makes all the difference in India. Vendors can work with multiple partners based on which have expertise with specific segments or customers. It isn't necessary to create exclusive partnerships. These partnerships help software vendors to generate demand directly.

Rule 8: Service Revenues. Indian customers are no different than any others - they expect world-class services. That includes support, training and professional services. Offering a full spectrum of services - product customization, training, education, support, and so on - is crucial to satisfying customers in India. Typically, overseas support is not acceptable to Indian customers. A partner-driven model works best in most situations if volume is sufficient. Importantly, these services revenues can contribute up to 50 percent of a software company's Indian market revenues over time.


Entering any new market is a challenge. However the significant size and potential reward of the Indian market warrants immediate attention from software vendors today. Careful consideration of the region's unique characteristics and thorough planning will help speed market entry and ensure success.

Srikant Sastri is Managing Director of Solutions, an Integrated Marketing Services Company, which helps technology companies, enter the South Asian market.

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