New Delhi:India has become Oracle’s fourth-largest market in Asia, from the 10th a few years ago, according to Krishan Dhawan, managing director, Oracle India.
“It is interesting how our acquisition of Peoplesoft, Siebel, Retek, i-flex and a couple of smaller companies in the telecom and utility space have found a suitable fit in the opportunities in which growing businesses in India are investing,” he said, adding that the company was setting up a new facility in Bangalore to expand and tap growth opportunities.
Oracle now employs around 18,000 people in India and the country accounts for the largest investment in research and development made by the firm outside the United States.
The company does not disclose its revenues in India; however, according to IT industry magazine Dataquest’s annual ranking of the top 20 information technology firms in India, Oracle ended 2005-06 with a revenue of around Rs1,700 crore.
Last year, Oracle established a presence in 17 fast-growing Indian cities to tap the growing market of small and medium enterprises (SMEs). Now the company is eyeing smaller cities and towns.
According to research firm IDC, 54% of the money spent in IT in India comes from SMEs. Orcale makes enterprise software that companies use to run their business processes, and as SMEs grow and tap overseas markets, they are likely to feel the need for such software.
According to software industry association Nasscom, the SME market is a Rs770 crore opportunity for companies such as Oracle. “Indian SMEs have become part of global supply chains,” said Dhawan.
India’s booming IT industry faces a shortage of manpower and to address the issue, Oracle has tied up with the Karnataka government to develop curriculum and course material for around 100 polytechnics in the state. It is now extending this initiative to Andhra Pradesh.