India is Asia’s third-largest economy and the world’s largest democracy. It is ready to adopt the upcoming technology in tech by the mediums of Zoom or Slack. After the sensitive LPG reforms more than 2 decades ago, India began its transformation into the IT sector and opening up to the global market.
During the COVID-19 pandemic, the businesses were forced to transform their baseline by investments in the digital infrastructure. This promoted the companies who were developing Software- as- a- Service- SaaS. For creating a safe working and remote workplace, the businesses spent an extra $15 billion per week in 2020.
According to reports by various tech-consulting firms and researchers, India could grow in this industry by $1 trillion in the upcoming years. There are a thousand companies in India that could be profound this value and produce SaaS. The 10 famous unicorns in India are also on this list.
SaaS companies provide software to other companies in helping them manage their relations with their customers. This software could extend from anything like banks and financial institutes to beauty salons and spas. Examples of SaaS companies could be MindStick Software, Freshworks, Zenoti.
Out of India’s unicorns and startups, 6 of them reached the milestone of achieving higher business by 2020, while the rest are paying attention to this. Also, investors from around the world inflated $1.5 billion into India’s SaaS business last year.
Talking of the investors, they are really excited about investing in India, as the massive adoption of the software tools and techniques over the year. A reason behind this could be India is expected to grow a large scale business in this sector because of:
- English speaking software developers, and
- The lesser labor cost (cost of hiring them). Because of these reasons, India has one of the largest developer communities in the world.
Software engineering is pioneering as one of the most active career options in the country.
In comparison to mega tech giants like the US and France, an entry-level developer’s salary in India is 85% lesser. India has both kinds of companies- some of them focus on International clients (TCS and Infosys) while some others focus mainly on the domestic market (Flipkart and PayTm). That’s why the investors are now interested in such firms.
The SaaS firms in India require lesser costs and input for globalization (open up to the global market). They write the code, design the software once and they are ready to go multiple times! But on the other hand, e-com firms require lots of input to set up physical operations.
However, there are some challenges too:
1. The Indian IT engineers, whose domain and curriculum of the study was not as such developing a SaaS till now, may find it hard to adapt to changes now. They need to build the discipline to cultivate a product-based company.
2. Despite being such a large producer of IT engineers, the ecosystem at the top-most level does not have a global tech powerhouse product brand.
There is still time for India to become a product market but the good news is, it can do so by 2030.