18/06/2012
Latest trends in the SaaS Industry in India
Many of us have witnessed the wave of transformation coming now and then in the way of Software and Information Technology Industry. SaaS is no different! It is growing at a rapid pace. Let’s see what is new and latest. Within last 3 to 4 years SaaS has seen humongous growth and is expecting a CAGR of 53% for the period of 2008-2015 (as predicted by Frost and Sullivan). It is expected to cross $350 million mark by end of this year.
Major dominance still is created by enterprise and collaborative applications. CRM, ERP, Security applications, as consumed by small and medium sized businesses, form a huge target market. Email services have scored the highest as compared to other enterprise applications. Interest is also growing towards PRMs, HRMs, e-learning solutions and e-procurement platforms. Content Management Systems development such as Joomla, Pligg are also likely to be prominent this year.
One of the major drivers is evolution of Telecom Service Providers. This industry has been growing and will continue to mature in future. Examples like BSNL tying up with Novatium, Airtel launching corporate mailing solution, Reliance offering hi-speed internet data card with leading laptop manufacturers, Tata Communications offering WiMax services; are all driving this industry. Airtel is also partnering with Nokia and Novatium for access device, Google for Google Applications, Microsoft for Operating System and MS Office, Tata Consulting Services for ERP/ CRM applications. Mobile companies like Nokia leverages on mobiles (smartphones) as access devices to provide applications like CRM. Mostly in means to build upon and expand the already existing networks and create connections across the market. This is mainly to keep in standing with one another, but each move is making the SaaS market stronger as a whole.
Growing internet pe*******on in India is aiding organizations to use application on demand rather than purchasing the complete license. Data Centre services have been budding in last few years and now India is becoming a global hub. Sectors like finance, manufacturing, telecom, retail, hospitality, logistics, travel and tourism are using hosting services through this innovative model. Though, BFSI segment is slow in adopting SaaS due to apprehensions about security and losing control over sensitive data.
The revolution in social media marketing and networking is bound to spill on the demand for dynamically changing applications. Organizations are linking up with social networks to launch new products, contacting customers and followers. These custom-based applications for business software, tools and games bring an innovative and enormous demand for SaaS. Salesforce.com and Zoho have alliances with Google to enable users to access all the services offered by these companies through their single Google ID. Launching their applications on Twitter and Facebook has made it easier faster and more effective to engage with customers.
Channel Partner focus is important to enter into Indian market to resolve the local language issue. Local Channel partner network will help scaling up effectively in this diverse market. India being second largest SMB market in the world, creating a high pull factor for SaaS. Buzzwords like “Fly at Re.1”, “Cars at Rs.1 lac”, “5 Star stay at Rs.1499”, “Call at 1 paisa” focus on the right price-value mix. Recession is making it all the more complex. SaaS being efficient, affordable and scalable have very low barriers to entry in such a market.
Thus, through SaaS the SMBs are looking for Technology, Delivery Model and Revenue Model Innovations for emerging in a market like India that gives many opportunities but also poses a lot of challenges.