In a market with demand fulfillment largely led by the US, India’s competitive advantages will help Indian SaaS companies see strong growth and create $50 billion in value over the next 10 years, according to a study.
The report, a joint report by Google and Accel Partners, outlines that global SaaS products will see hyper growth and adoption by SMBs. They will contribute to more than 75 per cent of the public cloud revenues driving the global SaaS industry to $132 billion revenues by 2020, of which SMB SaaS is expected to reach $76 billion.
With the demand from SMBs in the US projected to double, and an expected explosion of demand from Europe, Indian startups have the opportunity to grab 8 per cent of this revenue by creating purpose built innovative solutions targeted at SMBs globally. In a market with demand fulfillment largely led by US, India’s competitive advantages will help Indian SaaS companies see strong growth and create $50 billion in value over the next 10 years.
“Cloud computing is one of the top technology investment trends of this decade with venture funding for purpose-built SaaS solution exceeding $18 billion in the last four years. Indian startups have an edge, as mobility is also becoming a key requirement by SMBs for SaaS,” said Rajan Anandan, Vice President and Managing Director, Google Southeast Asia & India.
“Our startups are already building world class solutions for the mobile first users, this strength combined with easy access to global customer base online, will help India to become a very strong player in the global SaaS industry,” he added.
The report projects that with India’s advantages in engineering, inside sales, product management and mobile skillset creates a highly advantageous opportunity for Indian SaaS businesses to be profitable and scale quickly. By comparing unit economics advantages and current spread of demand fulfillment, the report outlined customer relationship management, data visualization, human resource management, marketing, healthcare and education as some key opportunity areas where big global SaaS companies can emerge out of India.