Businesses will pay to develop apps wherever there is an increase in the efficiency levels of the firm and value addition to the customers.
The value addition provided by device apps to the customer has become a trend to sell mobile phones or tablets. The budget smartphones and tablets will bring in more usage of these applications eventually and enable bigger market for the app developers in the country.
“However, the current usage of device applications is very low compared to western countries because of less number of smart phones. The current scenario had made mobile companies to sell more phones by marketing the applications that they have on the store. Mobile operators have also benefited from increased data traffic, but there are less than 1 per cent of developers who made significant money by developing applications, said Vishwanath Alluri, chairman and CEO, IMI mobile.
The general revenues sharing model between a developer and application store is 70/30, if the application gets sold in the application store. The market in India for a paid apps is very small and people generally go for free apps.
If a developer wants to opt for a free model and bring through advertisements, the percentage of business that are using mobile as a marketing platform for advertising is very less with only a portion of it is going apps. It is also the responsibility of an app developer to bring in advertising on to his app. All this makes matters difficult for the app developer to survive on advertising model either. As of now, there is no sustainable revenue stream for the developers in India, he said.
However, the apps are set to grow based on the utility and the purpose it can serve the businesses. There is an opportunity in developing in business-related apps. There are two types of apps one can develop to the business-employee facing application and customer facing application.
Businesses will be ready to pay substantial amount to develop applications for both the employees and customers where ever there is increase in the efficiency levels to the company and value addition to the customers.
For instance, there is a customer application for the cab services in the UK. The customer can easily find the nearest available cab of the company and click on it for a pick up using the GPS on mobile. Such an app will eliminate the call centre services significantly and increase efficiency levels.
“We developed an employee facing application for a company which maintains the telecom towers. They send site engineers to check and file reports periodically whether everything is functioning properly at the site. The app will verify the location of the site engineer while the report is filed. This will help the company to make sure the site is engineer is actually at site rather than simply sitting at home and filing the report,” said Vishwanath.
As far as general applications usage is concerned, the applications based on the utility like health, education, agriculture will work nor the ones with mere entertainment. The developers should not expect money unless it solves the real purpose to the users, he added.
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