Addressing a conference on 'Challenge of Terrorism to India's Infrastructure and Economy' here, Pillai said, "We are world leaders in software. But software industry is high on the threat list."
Pillai said all software companies in India were now realising this fact and they were taking their own measures to protect themselves.
Pillai said India's western coastline hosting several petroleum and nuclear installations is also vulnerable to terror strikes from the sea route.
"Petroleum and nuclear installations located on the western coast are highly vulnerable," he said.
"And the government is also in partnership with many of the companies making effort to provide adequate security (to foil any attempt by the terrorists to target them)," he said.