Software as a Service (SaaS) Continues to Gain Traction in India
October 19, 2007 (PRLEAP.COM) Technology NewsSpringboard Research, a leading innovator in the IT Market Research industry, today announced the results of its latest research on the Software as a Service (SaaS) market in India. Based on its data, Springboard forecasts the Indian SaaS market to grow at a compound annual growth rate (CAGR) of 77% from 2006 to 2010, to reach US$165 million by 2010.
Springboard believes that a buoyant Indian economy, driven by rising domestic consumption and exports, expanding broadband infrastructure, and increased internet penetration among small and medium businesses (SMBs), will make India a significant market for SaaS applications. SaaS also has great potential and room to grow in India due to low penetration of software applications among Indian enterprises, especially the SMB segment.
“The level of SaaS awareness in India continues to rise,” said Balaka Aggarwal, Senior Market Analyst for Emerging Software at Springboard Research. ”Our report showed that more than anything else, ease of use and management is driving this trend toward SaaS, with 44% of our survey respondents indicating that these were the key reasons they put SaaS in place, beating out lower cost of ownership at 23%,” Aggarwal added.
The challenge — and the opportunity — for SaaS vendors is to continue educating the market about the benefits that SaaS can provide end users. 26% of Springboard’s survey respondents in India named “low awareness of the concept and benefits of SaaS” as the main reason preventing their adoption of software as a service. Combined with responses like “technology not mature” (22%), “no business requirement” (16%), and “finding a SaaS vendor difficult” (12%), it is clear that increased education and awareness efforts can help vendors better market SaaS in India.
Springboard Research also found that while most SaaS applications are still purchased directly from the vendor, there is an emerging channel for SaaS in India appearing, especially for more complex SaaS applications focused on enterprise resource management (ERP), customer relationship management (CRM), and human resources (HR).
“End users in India definitely see a place for a SaaS channel, with the vast majority of our respondents saying that the channel is necessary or helpful when purchasing SaaS, Aggarwal said. “Many end users also feel that the channel can help with implementation as well as to provide ongoing comfort through face-to-face interaction.”
About This Study
The Springboard Research report, The Software as a Service Market in Asia Pacific, 2006 to 2009: Expanding the Reach & Appeal of Software, examines key trends in the Asia Pacific enterprise Software as a Service (SaaS) market, including in-depth coverage of India as a separate bulletin. A key focus area of the report is an array of market data, including market size and growth forecasts, for key application segments of the enterprise SaaS market in Asia Pacific (excluding Japan). Through our survey of 385 CIOs and IT decision-makers at enterprises in Australia, China, India, New Zealand, and Singapore, we have assessed the level of SaaS awareness, adoption and usage in more depth. Our report also profiles the leading SaaS vendors in the region, their offerings and business strategies.
About Springboard Research
Springboard Research’s core values are value, integrity and insight. Led by a team of dynamic industry experts, Springboard Research provides its customers with high value IT market research that helps them identify new market opportunities, growth engines and innovative ways to go to market. As a result, Springboard’s clients lead rather than follow market trends. Not bound by legacy, Springboard’s cutting-edge research model leverages its offshore research centers, the Internet, and an increased use of technology as engines of innovation to deliver unique research value. Provided as an alternative to traditional IT market research, Springboard’s reports deliver data and knowledge in a more usable and interactive format for our clients. Springboard Research works with the largest IT companies in the world in the software, services, hardware, and telecommunications sectors.
Founded in 2004, Springboard Research serves the needs of its clients globally through offices in the United States, Australia, Singapore and Japan, as well as from global research centres in India, Pakistan, and Morocco.
For more information regarding Springboard Research, please visit www.springboardresearch.com
Bhoorender Panwar, Business Development Manager
Chris Perrine, COO & EVP of Sales & Marketing
Balaka Baruah Aggarwal, Senior Market Analyst- Emerging Software