The Indian software-as-a-service (SaaS) sector is positioned as a key player in driving digital transformation and is in an extraordinary phase of growth and innovation, driven by the government’s friendly policies and robust infrastructure investment, industry leaders said on Thursday.
The export of computer software and services grew 12.2 per cent in 2022-2023 over the preceding year.
Moreover, the global market share of SaaS products from India is likely to reach 8 per cent by 2028, according to a latest report from advisory firm 1Lattice and venture investor Sorin Investments.
The domestic SaaS industry is expected to be around $50 billion by 2030, according to a latest report by venture capital firm Bessemer Venture Partners (BVP), driven by the government’s friendly policies and infrastructure investment.
“Businesses worldwide are increasingly turning to SaaS applications as the shift to Cloud-based solutions transforms operational and data management practices, bringing about enhanced efficiency and accessibility,” Hitesh Sahijwaala, EVP, sales and distribution at Cloud lending startup Lentra told IANS.
With continued investments by the government and enterprises in emerging technologies, India’s SaaS sector has emerged as the great propeller.
According to a latest Nasscom report, focus on application development, automation, verticalised products, SaaS, data migration for Artificial Intelligence and Cloud enterprise spending are some of the notable drivers to this growth in the country.
There are nearly 2,000 SaaS startups based out of the country. Prabhu Ram, Head, Industry Intelligence Group at market intelligence firm CMR, said that India’s SaaS sector is poised for explosive growth, fuelled by a trifecta of powerful forces.
“A large and skilled talent pool provides a strong foundation for innovation, while increasing digitisation across the country creates fertile ground for SaaS adoption,” Ram told IANS.
Additionally, the government’s policies focused on fostering innovation, talent development, and infrastructure investment, “can further propel the rise of Indian SaaS as a global powerhouse,” he added.
Recent trends show startups addressing specific industry needs related to building application programming interface-driven digital sourcing ecosystems to provide unassisted lending and faster go-to-market.
“Also startups are enabling the lending platforms to meet the regulator requirements with tailored SaaS solutions and fostering opportunities for expansion,” said Sahijwaala.