“While the transition away from global players may not happen overnight, this initiative lays the groundwork for Indian product companies to gradually gain greater mindshare and market share, both within the country and globally,” said Sharath Srinivasamurthy, research vice president at IDC.
Subramanian pointed out that initiatives like the Digital MSME Scheme, which subsidizes IT adoption for smaller enterprises, and recognition for GST-compliant (India’s nationwide indirect tax system) solutions are giving local ERP vendors a stronger foothold against global rivals.
Weighing value and reliability
Zoho believes a shift is already underway. “We do anticipate a gradual but meaningful shift among Indian enterprises and government agencies as they re-evaluate their reliance on global providers,” Singh said, adding that the three key drivers are value, faster time-to-value, and local support with long-term affordability.
Subramanian said that local ERP solutions could offer competitive pricing compared to global providers, making them attractive to Indian enterprises. “Indian-built ERPs are more likely to be tailored to local regulations, labor laws, and industry-specific compliance requirements.”
