ER&D software firms navigate Q2 bends with growth arrows in sight

BCG and Nasscom's signposts point to 8-9% annual growth through 2030, India's share to take express lane

The July-September quarter results of software companies in the engineering research and development (ER&D) segment were broadly in line with expectations, though there have been cuts in revenue growth guidance. While results were a mixed bag, and there are cautionary views on the near-term outlook, brokerages and global consulting firms highlight the strong growth trajectory for the sector. They expect this segment of the software sector to grow by 8–12 per cent going forward.

In a report earlier this month titled Seizing the ER&D Advantage: Frontiers for 2030, global management consultancy Boston Consulting Group and the National Association of Software