Why SaaS will dominate the Indian IT industry in the next decade

Over the years, India has witnessed a surge of businesses embracing cloud-based models to successfully run their operations. While Software-as-a-Service (SaaS) has been around for a few decades, the Indian SaaS ecosystem has more recently evolved with an early wave of category-leading companies positioned to service larger enterprise customers. Although SaaS is already gaining tremendous momentum, the near and foreseeable future will see higher growth rates. In fact, based on a 2021 SaaS study by Chiratae-Zinnov, India’s SaaS industry has the potential to grow revenues to as much as $75 billion by 2025 and create market capitalisation of more than $1.3 trillion, capturing around 19% of global demand for software products by then. This has been fueled by three key ingredients: