The slow recovery from recession means that companies are still jittery to spend more; instead, they plan to optimize the investments made over the last 12 months. “There is increased R&D activity in the ISV space, but lack of venture capital (VC) spending is affecting R&D spending for startups. The challenge is that there is still lack of capital, which is especially affecting VC-backed startups, though established ISVs are starting to invest in product development activities once again,” says Vishal Gauri, President  & Head of Customer Solutions at Nagarro.

For many of the large sized companies that participated in the Zinnov survey, mature/ existing products account for more than 75-80% of their total revenues, and hence they have to invest heavily on maintaining and enhancing these products to suit requirements.

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