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