Tech SMEs to grow in double digits to reach USD 40 billion by FY30: NASSCOM
New Delhi, Mar 29 (KNN) With growing tech demand, the tech SME sector is expected to contribute 7-9 per cent to the overall FY23 tech industry revenue at USD15 to 20 billion, a Nasscom report said on Tuesday.
The report pointed out that the Indian tech small and medium-sized enterprise sector revenue is likely to grow in double digits to reach USD 40 billion by FY30.
In terms of headcount, the Indian tech SME sector is estimated to close FY23 with 740,000 employees, with hiring for digital skills growing 2 times faster than traditional tech talent in FY20, it added.
The key digital areas of the sector in financial year 2023 include cloud, digital engineering services, advanced AI/ML and analytics and IoT and Blockchain.
Nasscom President Debjani Ghosh said, “The Indian tech sector has more than 10,000 SMEs dedicated to provide traditional and digital services to tech buyers globally as well as domestic.”
“Fast tracking innovation, supportive government policies and incentive schemes and dedicated SME-industry-academia connects will further augment the sector’s growth and help achieve double digital revenue growth vision by FY30E,” she added.
The India tech SME segment is also diversifying digital offerings across geographies.
North America accounts for 50-55 per cent of the Indian tech SME revenue with specific focus around niche cloud, AI, IoT, and SaaS products.
This is followed by Europe at 19-20 per cent, and the domestic market at 17-18 per cent, in FY23E.
SMEs have also increased their presence in the APAC region by making inroads into non-traditional Japanese and Australian markets and are exploring deeper penetration into the Middle East markets like the UAE and Saudi Arabia, the report mentioned.
The report highlighted that although the digital tech SMEs are growing rapidly on the back of IT modernisation and increasing digital demand, the segment still operates at a lower base compared to the traditional SME sector. (KNN Bureau)
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