Tech SMEs revenue to reach $40B by FY30: NASSCOM report
The sector is estimated to close FY23 with 7,40,000 employees and contribute $15 billion-$20 billion to the overall FY23 tech industry revenue.
Tuesday March 28, 2023,
2 min Read
The revenue from Indian tech small and medium enterprises (SMEs) is likely to reach $40 billion by FY30, as per a report by NASSCOM (National Association of Software and Service Companies).
The sector—comprising over 10,000 SMEs—is expected to contribute an estimated $15 billion-$20 billion, which is 7%-9% of the overall FY23 tech industry revenue, the report said. It is higher than the pre-pandemic share of 4%-6%.
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The report highlighted how the segment is diversifying digital offerings across geographies. North America accounts for 50%-55% of India's tech SME revenue, with a specific focus on niche cloud, AI, internet of things (IoT), and software-as-a-service (SaaS) products. This is followed by Europe at 19%-20%.
SMEs have also increased their presence in non-traditional Japanese and Australian markets and are penetrating deeper into markets like the UAE and Saudi Arabia.
Digital technology SMEs have grown 4X since 2019 due to increased investment in cloud, migration, SaaS, and AI-based solutions, the report said.
In terms of headcount, the Indian tech SME sector is estimated to close FY23 with 7,40,000 employees. The hiring for digital skills is growing two times faster than traditional tech talent in FY20, as per the report.
Areas such as cloud, digital engineering services, advanced AI/ML and analytics, and IoT and blockchain constitute key digital talent areas for the sector in FY23.
The push to digital services has led innovative digital SMEs to integrate deep tech solutions in their functions and value chains, said Debjani Ghosh, President, NASSCOM.
“However, for traditional tech SMEs to navigate headwinds, a shift to digital is eminent. Fast-tracking innovation, supportive government policies and incentive schemes, and dedicated SME–industry–academia connects will further augment the sector’s growth and help achieve double digital revenue growth vision by FY30,” she added.
Edited by Akanksha Sarma