Indian tech SME revenue to reach $40 billion by FY30, says Nasscom

Small and medium-sized enterprises (SMEs) in the Indian technology sector are expected to generate revenues of $35-40 billion by 2029-30 (FY30), a sharp uptick from $15-20 billion in FY23, according to a report by industry body Nasscom.

Digital tech SMEs — which offer cloud services, advanced analytics, and AI solutions — will account for 35-40 per cent of overall tech SME revenue by FY30, up from 21 per cent in FY23, the report said.

Overall tech industry revenue is expected to double to $500 billion by FY30. Traditional demand, the report says, will be outgrown by digital, and many legacy services will cease to exist in light of newer tech demand. 

Key enablers  for digital tech SMEs

Growing demand for dedicated Cloud, AI/ML, or IoT service providers

Local SMEs across smaller cities cater to AWS, Microsoft

Need for offshore digital-first services partners

Headwinds 

75%+ of clients are SMBs or foreign tech SMEs

Majority of SMEs depend on founder networks for business opportunities

75% of SMEs have minimal marketing budgets

Local tech SMEs in Eastern Europe and South-East Asia are growing

Tailwinds 

Local tech SMEs in Eastern Europe & SE Asia are growing 

India’s share of global outsourcing is 57-58% 

Subcontracting SMEs are providing tech platforms 

Domestic tech buyer demand will rise