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Deccan Herald » Business » Detailed Story
HUGE REVENUE LOSSES
Piracy is tech firms' biggest bugbear: Study
DH News Service, Mumbai:
Illegal and unlicensed software installations continue to be a significant problem and source of revenue loss for software companies worldwide...


About 55 per cent of executives estimated their firm's revenue loss at greater than 10 per cent of total revenue, according to recent US audit, tax and advisory firm KPMG survey.

In India, too, the picture is grim with 50 per cent of software being pirated. Overall, in the KPMG study, 87 per cent of the executives claimed revenue loss due to unlicensed users. 

Nearly 77 per cent of those surveyed agree with IDC (International Data Corporation) estimate that 35 per cent of software installed is unlicensed, leading to an estimated $34 billion in lost revenue to the industry.

The KPMG study found that 64 per cent of software publishing executives indicated that their companies have a programme designed to ensure customer compliance with software license agreements. And 36 per cent said that they do not have compliance programmes. 

KPMG surveyed 50 executives from software publishing companies collectively represented almost 50 per cent of total industry revenue. Twenty-eight per cent of those who responded are with companies earning $5 billion or more in software revenues.

In addition, 62 per cent are with companies earning more than $250 million. KPMG also interviewed executives at six prominent software companies to validate the survey findings.

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