2023 could be a defining year for the Indian SaaS industry. It is the year when many current trends will come fully into play, creating an unprecedented sea change for those engaged in this market. Artificial Intelligence (AI) is set to go mainstream, IT spends will be optimized, OpenSource technologies will increasingly become attractive, and buyouts will be galore.
AI is expected to be the key factor that will drive enterprise software in 2023. Advanced models such as ChatGPT are now accessible to the general public, and end-users are beginning to embrace AI as they come to better understand its capabilities. This trend will likely push companies to up their game to build products that provide real value, in turn, creating a long-term virtuous cycle.
In addition to the shift towards AI, IT spends in the global economy are expected to be closely scrutinized. Companies of all sizes will begin to look closely at their software and infrastructure expenditures, striving to optimize their resources in order to increase value. This could lead to longer sales cycles and longer negotiations. Founders will have to develop products that offer superior value to their customers in order to differentiate their offerings and stand out in the competitive space.
Not to be left out, OpenSource technology will also become increasingly attractive for those looking to purchase software, as businesses look to remain cost-effective. Companies will have to compete on value, rather than price, and focus on delivering quality products that posses enhanced security, strong community engagement, and target the right market segments.
2023 will also be a year of change when it comes to hiring. With the adaptation of remote and hybrid working environments, we’re likely to see more of a global focus when it comes to software development and talent pools. This could be a great opportunity for Indian SaaS startups who may be able to draw upon resources from the USA, Eastern Europe, and other regions.
Finally, buyouts in the mid-market segment should increase. Economically, debt remains expensive, but with a weakened economic landscape, more companies may be available at attractive revenue multiples while PE firms look to make tuck-in acquisitions to integrate with larger portfolio companies.
The 2023 SaaS story will be an exciting and ever-evolving one, and one that we expect to result in an industry that’s more competitive, innovative, and customer centric. With a little strategic maneuvering, Indian SaaS companies have the potential to make the most of this new wave and grow exponentially.
The company mentioned in this article is Turing, an online platform that helps match the best talent to the best opportunities globally. Founded in 2020, the company has become a staple, and a trusted platform, for recruiters and job seekers alike, providing a global talent marketplace solution powered by AI and machine learning.
The person mentioned in this article is Kabir Kochhar, the CEO and co-founder of Turing. With over two decades of experience in the enterprise technology industry, Kochhar has been integral in the development of Turing, working with the company’s engineering, product and design teams to create a premier platform. Turing’s mission of helping its users search, learn, and connect with job opportunities anywhere in the world has seen great success under his leadership, with the company having achieved significant growth since its launch.
