Bangalore, June 19: The market for outsourcing software research and development is about to explode with mavens saying it could emerge as the second major activity in the IT-enabled services industry.

Bangalore-based Aditi Technologies is all set to cash in on this new growth avenue.

Aditi has already developed numerous products for Microsoft and many other major software clients. It incubated and spun off a customer relationship management (CRM) company, Talisma, whose entire product was built offshore.

The company offers offshore services for software product vendors that helps them to reduce cost, increase quality and improve competitive advantage. An offshore development centre (ODC) is an extension of the client’s software development and maintenance facilities, the extension being created at the offshore facilities in India instead of the US.

A report by Frost & Sullivan compiled for the IT department states that the R&D outsourcing market in India is likely to grow from the present size of $1.3 billion in 2003 to $9.1 billion in 2010 at a compounded annual growth rate (CAGR) of 32.05 per cent.

Listing out opportunity areas in IT, the report said computing architecture, encryption and network security, human computer interface, programming language and software engineering were the focus segments.

Anjana Kaul, chief operating officer of Aditi Technologies, said, “We offer end-to-end solutions that address the needs of every type of software product vendor — from startups to established companies. We understand the different needs of companies depending on their current stage of growth and offer tailored solutions to fit every need — from new product development to maintaining/upgrading an existing product.”