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India’s Tech SMEs: Rising in the Global Digital Arena

March 27, 2023 2622 0 Tech for Good

India’s Tech SMEs: Rising in the Global Digital Arena

Technology industry has 10,000+ SMEs dedicated to providing either traditional or digital solutions to the technology buyers. This subsegment will contribute an estimated $15-20 Bn in FY23 revenues, comprising 7-9% of the overall technology industry in India. This study, India’s Tech SMEs: Rising in the Global Digital Arena, is a first-of-its-kind publication on this crucial segment of the overall tech industry. This study also covers a brief landscape on the state of the tech SMEs in India, their growth trends, digital and traditional tech offerings, and the potential growth outlook through FY30.

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Key Findings:

 

  • Tech SMEs in India contribute 7-9% to the technology industry, having grown at a 10%+ CAGR through FY19, with roughly 90% in the micro and small categories
    • Discussion on growth trends, traditional and digital portfolio, location and talent strategy in the last 3-4 years
    • Key geographic trends, primary sectors, and the go-to-market strategies across global and domestic markets

 

  • Digital SMEs have grown 4X since FY19, with focus on cloud migration, SaaS, digital engineering, and advanced analytics and AI-based solutions
    • Analysis of major areas of digital focus – cloud, analytics/AI/ML, digital product engineering services, IoT/Edge solutions
    • Trends in digital talent growth, hiring, and major locations in India where tech SME talent is located
    • In-depth profiling of 21 SME case studies highlighting innovation in digital services, products, and transformation capabilities being offered from India for the world

 

  • Indian tech SMEs have grown on a smaller base, however, similar or higher growth, particularly for traditional services SMEs, may need focused action against headwinds
    • Headwinds that have begun impacting the traditional tech SMEs more as India’s tech industry gets more competitive
    • Tailwinds that have supported and are going to enable more digital shift in the near future

 

  • Doubling of Indian tech industry to $500 Bn by FY30 is expected to entail similar trend for the tech SMEs, with digital revenues growing 2-2.5X, to 35-40%
    • Growth outlook through FY30 for both, the traditional and the digital tech SMEs based on an analysis of the current trends and anticipated future shifts, leading to a set of

recommendations for this segment to grow and thrive

 

For a lot more details on the Indian Tech SMEs, download the full report.

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