By FY30, the Indian IT sector is anticipated to generate $500 billion in sales, with a large portion of this development coming from the country's small and medium-sized firms (SMEs). In the Indian IT sector, SMEs are predicted to produce revenues of
$35–40 bn by FY30, compared to $15–20 billion in FY23, according to a study by the industry association NASSCOM. Cloud services, sophisticated analytics, plus AI solutions provided by digital tech SMEs are anticipated to account for 35–40% of all
tech SME sales by FY30, up from 21 percent in FY23.Additionally, the study revealed that 60% of IT SMEs are business process outsourcing, or BPO, companies, while 15% provide software products and software-as-a-service. (SaaS).From approximately 550,000in FY20 to 740,000 in FY23, the number of people employed by tech SMEs in India is anticipated to increase at a CAGR (compound annual growth rate) of 10.1%,with 70% of these workers residing in the six major cities of Mumbai, Delhi, Hyderabad, Bengaluru, Chennai, and Pune.
The survey made clear that 3 out of 4 tech SMEs had little to no marketing expenses and that tech SMEs are still reliant on their founder network for commercial possibilities. Successful SMEs, however, used 3-5% of revenue on R&D, compared to others that only spent 0.1-0.2%.
According to Debjani Ghosh, president of NASSCOM, conventional IT SMEs will soon switch to digital services. Many legacy services will be disrupted by the demand for developing technology. It will also have an effect on current positions and skills and result in more flexible hiring practises. In order to further accelerate the sector's growth and contribute to the achievement of the double digital revenue growth target by FY30E, the research emphasised the need for supportive policies from the government, incentive programs, and committed SME-industry-academia ties.
In conclusion, SMEs in the Indian tech sector have huge development potential, particularly digital tech SMEs that provide cloud services, cutting-edge analytics, and AI solutions. To be competitive in a market that is changing quickly, they must spend in R&D and adapt to new technology.
(Sources: Live Mint, Business World)
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