Home SAAS The SaaS trade is the subsequent massive factor in India

The SaaS trade is the subsequent massive factor in India

  • A number of analysts firmly believe that Indian companies will double their share of the global SaaS market in the coming years.
  • One study even showed that India’s SaaS industry could reach $ 1 trillion by 2030 and create nearly half a million new jobs.
  • The total amount that the Indian SaaS community increased to around $ 1.5 billion in 2020 is four times what it was invested in 2018.

A core model of cloud computing – SaaS (Software-as-a-Service) is a software delivery method in which service providers host an application on their own servers that can be accessed by a client over the Internet. The Indian SaaS industry reflects a rapidly digitizing global business environment has gotten stronger and stronger lately.

In retrospect, SaaS made its way into India over a decade ago, serving customers from abroad. It was only in the last few years that Indian company saw the benefits of SaaS in making the business work. Soon, companies with large teams were choosing software installations for their business operations. But over time, even startups began to see the need for automation and ease of doing business that software brings.

Where is the Indian SaaS industry developing?

While the SaaS phenomenon is global, India in particular has the opportunity to take its SaaS momentum to the next level. The country’s SaaS industry is expected to generate revenues of $ 50 billion to $ 70 billion by 2030 and capture four to six percent of the global SaaS market. This would effectively create up to $ 1 trillion in value. according to a report by SaaSBOOMi and McKinsey.

For context, India currently has around 1,000 SaaS startups, including 10 unicorns, which together have annual sales of $ 2-3 billion and employ nearly 40,000 people, data from McKinsey & Company showed. The number of unicorns could increase tenfold by 2030, they predicted.

A report by Google and KPMG goes a little further. India is said to be home to a $ 10 billion SaaS industry, the global share of which is expected to grow to eight percent. Currently, the SaaS industry is growing at a cumulative rate of 18% and SaaS in medium-sized companies is expected to grow by 36% in the next few years.

The industry currently employs 40,000 people and many of the companies like Chargebee Inc. are global and some like Freshworks Inc. are looking to public stock offers. Interestingly, 10 new unicorns have appeared over the course of the pandemic: Postman, Zenoti, Innovacer, Highradius, Chargebee and Browserstack, Mindtickle, Byju, UpGrad and Unacademy.

There have also been several cases of significant venture capital funding, including a $ 150 million deal for Postman, bringing the total amount raised by the Indian SaaS community in 2020 to around $ 1.5 billion, four times the investment in 2018.

Analysts believe that overall growth was also driven by Indian SaaS companies, which have an inherent cost advantage resulting from lower overheads and readily available, low-cost, skilled labor in the country. It is estimated that there are over 100,000 SaaS developers and other technical talent available in India at a third of the cost available in the US.

This makes Indian SaaS companies hot picks for international companies to invest in managing the critical back end. Add to this India’s already established advantage in back-end support through its IT and ITES sector, which significantly lowers the overall costs of companies.

Overall, India has exciting times ahead of SaaS as more and more companies move to the cloud. With India already having an advantage in this area, it is well positioned to play a leading role in the global SaaS segment for the next several years.

Dashveenjit Kaur
| @DashveenjitK

Dashveen writes for Tech Wire Asia and TechHQ, providing research-based commentary on the exciting world of technology in business. She previously reported on the spot on Malaysia’s fast-paced political arena and the stock market.

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