There are approximately 200 website designing companies based in Noida according to a simple search on justdial.com. However, this number cannot be confirmed, the number of players is significant according to most players.
"It has been a gradual progression from static website to dynamic website to simple web application for enterprise to complex software development," says Partho Ghosh, director of Ennovation Techserv, a Noida-based software development company. "Noida has become a practical alternative to Delhi as a website development hub in North India, but there is always a dearth of a quality and reasonably priced service providers. I think the growth rate should be somewhere between 20 and 30 percent," he said.
The five-year old company provides services in development of websites, web, mobile and software applications. "Our major clientele has been from travel, tourism, finance, retail, manufacturing, education and services. In terms of revenue its 65:35 for corporate to SMB and in terms of number of clients its 40:60," says Ghosh.
Supporting Partho's positive outlook, Mithilesh Keshari, director of Dreamzsop Advertising based in Noida says, "Starting own web design business can be exciting and rewarding. As the web continues to grow in size and technological offerings, and the competition for business increases, demand for skilled website developers who can deliver a competitive edge isn't likely to decrease. This industry will continue to grow at a steady pace of 15 to 18 percent annually."
"Website design and development gives your business an opportunity to explore your expertise and skills more powerfully through the internet enabling your workforce to focus on their core tasks and save high cost of operations," highlights Kesri.
Dreamzsop Advertising, launched in 2003, provides web-based solution to education, retail, consumer products, media, entertainment and financial sector. "Our target market is all small, medium and large enterprises along with individual clients. Revenue share is almost 50:50 for both SMBs and large corporate," says Keshari.
Their core services include website designing, web based applications, PHP/MySQL development, search engine optimisation, Internet marketing, online advertising, web hosting and domain name registration.
"We achieved breakeven within the first year and have been attaining a return on investments of almost 25 percent," adds Keshari and for Ghosh the business has been giving returns and growth close to 60 to 65 percent.
For these website makers, over 70 percent of the business comes from Delhi-NCR and other metros but tier-II and III cities are not far behind. "There is no doubt that the demand from the tier-II and III cities are picking up. There has been increase in the number of enquiries by as much as 50 percent year-on-year," emphasises Ghosh.
Global Dreams
The business of prominent local players is not restricted to India alone. "We have most clients from the US, the UK, Canada and Australia. In terms of revenue it's approx 65:35 and clients ratio is 25:75," says Kesri of Dreamzsop. For Ennovations too, the business from foreign market is 70:30 and in terms of clients it will 60: 40 in favour of domestic.
In case of domestic market, the revenue model for players is development cost and maintenance. There are services like SEO that goes on subscription basis. For international market, with development, focus is also on migration, re-engineering, support and maintenance projects.
Another well-known Noida-based website developer is Fables Technologies. Launched four years back, the company is primarily focussed on outsourced web solution projects. "India is the most favourable destination for offshore outsourcing web-related services to reduce overheads. We deal with overseas client because the ratio of revenues from India to overseas is five times or more," says Gaurav Kumar, business development manager, Fables. Its overseas market includes the US, Canada, Australia and Malaysia. NCR is the only region it serves in India.
"Domestic business has picked up in last two years with revenue share of nearly approx 15 percent. For domestic clients, we do SEO and email marketing and for foreign cos we use online bidding portals like Elance, freelancer, guru etc."
The marketing strategy used by players is focussed mainly on B2B like SEO, exhibitions, and seminars, SMO etc. In addition online advertisement and search engine promotion are other tools.
According to players in the market, through innovation, organic growth and effective marketing growth can continue. The main challenges in this industry is to make the website up-to-date in terms of programming so get rid of hackers. Client profiling is critical to see that you are choosing the right client and not ending up wasting your time and money.
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