India has a list of successful software services companies. Although we are world leaders in IT, we are nowhere near the global giants in the product segment. Many reasons can be given, including a lack of motivation to substitute R&D activities. However, there are few organizations that have taken the road less traveled and found success. Tally Solutions is certainly one of them. The organization is among those that changed the perception that software systems should be expensive and complex. It made them accessible and affordable for everyone. Tally has almost become synonymous with accounting. The list of hymns of praise ends here, however. For all the promise it exemplifies, the company, which is more than two decades old, hasn’t moved much beyond its territories. Piracy has hit the company hard, according to a Tally insider.
What we’ve seen over the years is a huge drop in value. There are about 40 lakh companies in India. So far, IT hardware and software vendors have tackled only 50% of them. Tally has around 7,000 registered users, but the fact is also emerging that most of them use pirated software. According to a third-party research conducted a few years ago, around 90% of Tally usage is pirated. The good news is that it’s now down to almost 70%. Piracy is one of the main issues that worries everyone. Sometimes it seems impossible. On the other hand, the business started at the same time in mature markets such as the USA tally software have now grown into big-money organizations. Because the piracy rate in such countries is around 25%.
Given the diversity and spread of our customer base, it is not physically possible to detect and stop piracy on the end-user side. Unfortunately, the business isn’t growing at the pace it needs to be, and it’s only growing incrementally. It has the potential to grow at scale and can at least triple the growth if not more. This applies not only to the Tally software, but to the entire IT industry. Tally with its entire latest version Tally ERP 9 marks its presence in 54 cities through more than 9,700 partners. The organization has more than 1000 employees operating in 14 cities. As the business spreads around the globe, the accounting master expects it to counteract the threat of piracy and provide more polished versions in the near future.