SaaS-based Enterprise Resource Planning(ERP) in India is expected to grow at a compound annual growth rate(CAGR) of 28%, according to a recent report.
Small and medium businesses (SMBs) are now looking to adopt SaaS-based ERP solutions, which will help them with faster deployment and enhanced cost effectiveness, said research firm Gartner, who released the report. (Source)
According to Gartner estimates over 1000 user organisations have adopted SaaS-based ERP in India and China combined.
“In the next five years, SaaS ERP is expected to grow by 28% CAGR in India and 37% in China over the next 5 years. In line with the global trend, end users in India and China deploy SaaS ERP because of the benefits of faster deployment and the perception that it is cost effective,” said Gartner India Research Director Sunil Padmanabh
Gartner also said that, on-premise ERP market in India is expected to touch $538 million by 2017 from $178 million in 2013, growing at a CAGR of 17%.
Padmanabhan also added,“SaaS ERP in India will experience gradual adoption through a wider choice of solutions, vendors and rapidly evolving partner ecosystems,”
SaaS ERP applications in India and China constitute less than 5% of overall ERP market in India and China.
The cloud nature of delivery the SaaS- based platforms adopt, is gaining much traction nowadays, mainly due to its on demand delivery nature. Inspite of this, SaaS-based solutions are yet to gain traction in mission critical operations like banking and telecom and public sectors. Only better tractions in such operation will ensure a faster adoption rate for SaaS based ERPs in the country.
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