SaaS market in India expected to triple to about USD 1 billion by 2020: NASSCOM

Q.  SaaS market in India will triple to what amount by 2020, according to a research report by NASSCOM?
- Published on 11 Jul 16

a. 700 million
b. 500 million
c. 1 billion
d. None of the above

ANSWER: 1 billion
Software-as-a-Service market in India is expected to grow by as much as three times to USD 1 billion by 2020, as per NASSCOM research.
  • Demand will be driven by businesses aiming to zero in on core operations.
  • Market for SaaS was pegged at USD 300 million in 2014-2015 as against USD 407 million in 2015-2016.
  • SaaS is a pay-as-you-go software distribution model.
  • Research points that there are differences in over 150 firms offering solutions in SaaS segment with start ups powering the segment.
  • Close to 40-45 percent of the companies within the segment are startups.
  • Investors are showing keen interest in the number of startups.
  • India SaaS based products have received close to USD 450 million in the first two quarters of the previous year.
  • Close to 170 million was invested in such start-ups in 2014 across 22 deals.
  • Number of such deals have grown by 2 times to 22 in 2014 from 11 in 2011.
  • With 60 percent of the funding, in post 2012, more startups are being able to access funding in the past 5 years.
  • The US and EU account for more than 80 percent of the demand for Indian SaaS Solutions as per the report.
  • Internationally, the SaaS market was pegged at USD 31 billion in 2015; it is expected to grow at 18 percent annually to USD 72 billion by 2020.
  • Players like SAP, Oracle, IBM and Microsoft have cornered close to 50 percent of the global SaaS market

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