Aditi Technologies, the Bangalore-based offshore service provider that helps companies develop software products, is gaining traction among US start-ups as well as those companies that are into software development.

Classified as 'Emerging' in the software product development space, these companies are no more hesitant to outsource their product development work to India.

In the last six months, Aditi Technologies has signed five large deals in the $1 million range and these deals have come from companies under this 'Emerging' category.

Essentially, such deals require about 20-25 people and sometimes even go up to nearly 50 people working on software development for the client.

Aditi has offshore development centres in Washington and Bangalore, which provides an extension of the client's software development and maintenance facilities.

As a result, most start-ups or any software development venture can benefit to the extent of 30-50 per cent on development costs, depending on the mix of onsite and offshore teams.

"Internal IT requirements among companies has become sophisticated. In the last two years, the market for startups and product development companies has emerged in a big way. As we have been addressing them from a long time, our ability to get work from these companies is quite high. The traction looks very good for the next 12-18 months," Anjana Kaul, COO, Aditi Technologies told Business Standard.

Microsoft, the largest customer for Aditi, has nearly 60 different product development initiatives where is working with the latter. Aditi is currently 350-strong with nearly 150 people in Washington.

Buoyed by the strong inclination among US companies to outsource their software development work, Aditi plans to be about 500-strong within the next 12-18 months.

"We grew by 33 per cent during the previous fiscal. This year, we have an ambitious target of 50 per cent topline growth," added Kaul.

Recently, PI Corporation announced its decision to outsource its entire core development work for its products to Aditi. PI is a new company founded by Paul Martiz who was till 2000 the senior vice president in Microsoft and a member of its core executive staff managed the development of successive flagship products like Windows 95, Windows NT and Windows 2000.

According to recent studies that were conducted by Frost & Sullivan, which undertook the study for the Department of IT, the R&D outsourcing market for IT in India is expected to grow from $1.3 billion in 2003 to $9.1 billion in 2010, at a compounded annual growth rate of 32.05 per cent.