Around 30 software product firms have broken away from Nasscom to set up their own apex body have formed a separate association called the Indian Software Product Industry Round Table, or iSpirt, The Times of India reported on Sunday.
The breakaway group includes smaller software product developers like Tally Solutions, and product veterans such as former head of Yahoo's R&D facility Sharad Sharma and InMobi founder Naveen Tewari, the report said.
It said for the first time since Nasscom - the National Association of Software and Services Companies - was founded in 1988, the trade association is facing a revolt from smaller firms who are beginning to break away from the pack to establish their own, focused groups and think tanks as Nasscom has not been able to address their issues and needs.
Unlike the software services business that's used to multi-million dollar projects and large payrolls, software products require deeper engagements with fewer customers. Instead of broad-based industry lobbying, these firms need discussions around intellectual property apart from establishing links with potential customers in India and overseas.
These firms, which have grown from $113 million in revenue during 1999-2000 to now $1.81 billion, have been dwarfed in size by the $70-billion software export sector
Experts say while Nasscom has lobbied effectively on larger industry issues, the unique needs of smaller firms have been overlooked.