Unlocking India's $1 trillion SaaS opportunity
India could be on the cusp of unlocking a $1 trillion opportunity for Software-as-a-Service (SaaS) companies, creating nearly half a million new jobs by 2030, according to a report titled 'Shaping India’s SaaS Landscape' by SaaSBOOMi, in association with McKinsey.
To be clear, software accounts for 20 percent of the total enterprise spending on technology but has a value creation of nearly 50 percent.
The SaaS industry — which is $2.6 billion in size and employs about 40,000 people — is expected to record a 20X revenue jump by 2030. The narrative goes beyond this mammoth opportunity.
This ‘20X jump’, which will generate $50 to $70 billion in revenue, is merely 6 percent of the global SaaS market — reflecting the untapped size of the pie and the huge window of opportunity that lies ahead for the SaaS industry.
In a conversation with YourStory, Manav Garg, Founder of Eka Software and Together Fund, and Noshir Kaka, Senior Partner at McKinsey, deep-dive into how Indian SaaS providers can scale to their full potential and win 4-6 percent of the global SaaS market.
According to Noshir, there are three to four critical skill sets that the SaaS industry will be short of across the globe for the next 10 years as he categorises major opportunities in three areas—Horizontal SaaS, Vertical SaaS, and the developer tools market.
Check out YourStory's complete coverage as India marks its 75th Independence Day here.
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Editor’s Pick: Women in Tech
Ritu Thareja’s fascination for computers started while she was in school. She started writing BASIC codes and algorithms during her spare time, which led her to pursue a career in computer science.
But her road to her current position as Vice President, Software Development, Fiserv, did not start easy. Read more.
A report by Pearson Research says that 95 percent of Indian engineers are not equipped for development and coding jobs. To upskill students and teach them industry-level coding skills in an interactive manner, Mehul Mohan started Codedamn in Delhi in November 2020.
According to him, the edtech startup combines video content delivery with hands-on practical experience in a bootcamp-based setting to allow people to practice and build projects in their browsers. Read more.
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News & Updates
- Prime Minister Narendra Modi announced a Rs 100 lakh crore 'Gatishakti' initiative to bring employment opportunities for the youth, help local manufacturers become globally competitive, and aid in holistic infrastructure growth.
- Fintech startup Setu is working with potential partners in the Account Aggregator (AA) landscape to build a developer experience for the sandbox. With Setu’s AA sandbox, lenders could build a flow for MSMEs to apply for working capital loans using their bank account statements.
- Ola Electric announced the launch and the pricing of its much-awaited electric scooter - S1, with two variants S1 and S1 Pro. The scooters will be available for purchase from September 8 and deliveries will begin in October.
- At the launch of the Ola Electric scooter, Bhavish Aggarwal, Founder and Group CEO, Ola group of companies said, instead of importing IP into India, build and make the technology in India. He addressed a question by the media on Tesla CEO Elon Musk's demand to reduce customs duty on imported electric cars.
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“The funding and skilling initiatives can come from the industry. What we can’t provide is access and infrastructure, which we need from the government. We need to build the required skill sets into existing programmes so that the pipeline for the next generation of jobs can be filled.”