What’s Driving India’s Most Powerful IT Industry Segment During Pandemic
Software product is one of the powerful segments of IT sectors which have the potential to grow multi-folds and can also be the economic driver in the future. The strength of this sector was also visible in the way it handled the impact of COVID-19. Software product market maintained positive growth even when other sectors were bleeding due to pandemics. This marginal growth also confirms the potential this sector can offer even when businesses around the world are struggling.
But what actually lead to the positive growth of this sector even during such hard times. This industry saw many new trends which might be there earlier but the scale was too low to be visible. Let’s discuss these trends in brief:
- Cybersecurity products demand rise: As per a recent report cybersecurity attacks increased by 2X than the global average since lockdown which leads to the organizations and individuals towards the faster adoption of cybersecurity software products. Numbers also confirm the same, Indian cybersecurity market CAGR is ~2X that of global CAGR over the period 2018-20
- Rise in usage of collaboration software: With people made to work from home, the need for collaboration software increased drastically. The growth in subscriber base of platforms like Zoom, CISCO Webex, Microsoft Teams etc. confirms the same.
- Cloud adoption rush: Cloud adoption has been increasing over time but banks suddenly shifted their focus towards the cloud and started adopting it rapidly. Factors like the growing need for anywhere banking after the pandemic, offering hyper-personalization for clients, etc. pushed the need for cloud adoption among banks.
- SMB Specific Products: SMB is one of the worst-hit sectors during the pandemic. From drop-in customer demand to supply chain disruption, they got impacted in every way. Many companies focussed on building SMB specific products which helped them in handling the pandemic impact. Such solutions saw a significant rise in adoption.
- SaaS spreading its wings: SaaS has the solution for every problem, this fact also got proved during the pandemic when SaaS-based software solution was getting adopted aggressively by organizations. SME, emerging tech-focussed SaaS companies saw a huge boost, also ~25% rise in funding was observed compared to last year (Jan – Oct 2020)
- B2B e-commerce: Restricted movement pushed retailers to take the online route for selling their products and to get uninterrupted supplies. Also, the retailer’s preference was to pay digitally, the option which unorganized dealers cannot offer. All these factors pushed the B2B e-commerce demand.
To get more details on the trends mentioned above. Please download NASSCOM Strategic Review 2021 by clicking on the link below:
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