SaaS technology is pioneering advancements in several industrial sectors with its in-built efficient systems.
Business today has accelerated their technology investments as a result of the pandemic. Companies have been launching efforts such as digital transformation, new workplace access models, and improving the customer experience, among other things. Accelerated technology spending has become a reality as a result of remote working, the digital economy, automation, and supply chain improvements, and these trends are here to stay for the next decade. We are entering a period in which technology-enabled enterprises and companies will generate more value for all stakeholders.
According to Gartner, the SaaS market is expected to reach $265 billion by 2025.
While India has emerged as a global leader in outsourced IT services, with the industry set to grow to $350 billion in the next five years, the opportunity arising from many of the areas outlined above will be much larger, potentially amounting to a $1 trillion market opportunity for Indian firms in the next decade.
Adoption of new technologies is enabling easier connect with the consumer and will also create demand and opportunities. The following are some of the promising areas anticipated in 2022:
Horizontal SaaS Solutions
This particular solution covers CRM, enterprise collaboration, HR technology, application, and developer productivity. Many Indian enterprises have developed solutions that were originally designed for Indian businesses, scaled their operations, and then began addressing the worldwide market. Companies like Zoho, Postman, Freshworks, Browserstack, and others are some examples in this field. . Freshworks was the first Indian SaaS company to be listed on NASDAQ, and it now has a market worth of about $10 billion.
Vertical SaaS Solutions
These are business processes that are vertically related and require specific solutions. With tools for seamless data integration now available, Indian SaaS companies have a wonderful potential to locate the proper niche in vertical segments and build products around such niches. Many Indian SaaS companies have built products for Indian customers, scaled the solution, and then expanded into international markets. Many of these businesses have revenue ARRs (Annual Run Rates) that are equivalent to their global counterparts, allowing them to compete effectively on a global scale.
Technology enablement for global SME’s:
This has mostly been an untouched market for the technology industry, and with the changes that are occurring, it now presents big potential. The cost of technology is decreasing, making it more accessible to a wider range of businesses. SMS can also compete more effectively with larger organizations thanks to technological advancements. Indian companies such as Khatabook, Open, and others are aggressively expanding this sector intending to become global players.
These are a few SaaS solutions that will enable business in 2022. For a variety of tasks, goals, and outcomes, today’s organizations and consumers demand robust, accessible, and valuable software-centric solutions. As the world’s digital transformation accelerates, the SaaS business will only become stronger, fueled by the kind of innovation that makes the future easier and wiser for everyone.
In the last five years, worldwide SaaS companies’ median revenues have doubled, but their valuations have increased by 5X. For the foreseeable future, the market for technology products will be strong, creating enormous opportunities for Indian SaaS enterprises. In the next five years, the number of unicorns in India could easily expand 10X from present levels, thanks to the strong ecosystem already in place. The day will come when the Indian SaaS ecosystem would have over 1000 unicorns. These businesses will not only generate considerable value for their stakeholders, but they will also generate a big number of high-quality jobs, which will be extremely beneficial to the Indian economy.
Founder & CEO – Ikokas Digital Technologies