Newgen Software Technologies

Most Indian IT companies sell engineering hours. Newgen sells software that can keep getting paid after the project ends. Newgen’s software is the invisible machinery behind paperwork-heavy organisations. A bank can use it for loan origination, an insurer for claims and a government agency for document workflows. It sells licences, subscriptions, implementation and recurring support. As recurring revenue grows, the business becomes stickier, more predictable and more scalable than simply adding more engineers for every new rupee of sales.

The one thing to remember: The more revenue becomes recurring, the more Newgen behaves like scalable software rather than project services.