India's software-as-a-Service (SaaS) industry could potentially be valued at $1 trillion and create around 5 lakh new jobs by 2030 as businesses across the globe expedite digitisation and automation, according to a report by SaasBoomi, a community of industry founders and builders, alongside consultancy McKinsey & Co and the country's software industry trade group, Nasscom.
The report titled 'Shaping India's SaaS Landscape', published on Wednesday evaluates that Indian SaaS companies can increase revenues to $50-$70 billion by the end of the decade, Bloomberg reported.
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There are over a thousand funded startups and 10 unicorns in India's SaaS sector, generating approximately $3 billion in annual subscription revenues, according to the report, which projected that the number of unicorns could increase 10-fold by 2030, touching $1 trillion valuation.
The SaaS industry, which presently employs 40,000 workers, could grab as much as 6% of the international market, which is pegged to be worth $1.3 trillion by the end of the decade, the report further stated.
After around four decades of the rise of India's IT services industry, tech entrepreneurs have established thousands of startups that provide niche software solutions, varying from billing to customer support, as a subscription service through the cloud.
Several companies, such as Chargebee Inc., have gone global, while some, like Freshworks Inc., are on course to public share offerings.
However, several startups are faced with challenges in obtaining capital during their initial stages and attracting skilled talent to grow.
The industry may need to increase funding at three to four times the present level to get to its potential over the next 10 years, the report added.
Notwithstanding the challenges, "India has an exciting opportunity to propel itself on to the world stage as a SaaS force to be reckoned with," Manav Garg, founder and chief executive officer of Eka Software Solutions and a founder partner of SaasBoomi, said in a press release.
The report further noted that SaaS and Software accounted for $600 billion of the $3 trillion in global enterprise IT and communications expenditure last year. The industry is growing at an annual rate of 8%, which is twice the pace of the whole IT market.
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