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Perhaps no other country is in the vortex of so many revolutions as India. The cell phone, arriving
here in the beginning of this millennium, has transformed life in India--especially in the vast rural
hinterland where connectivity helps farmers access up-to-date information about their produce or
weather patterns so they can plan more efficiently. The advent of cheap smartphones promises to
disrupt ossified and inefficient industries such as education and healthcare.
"Six years ago, to accomplish what we have today [with the SaaS model] would have taken 5 times the duration of time and 10 times the current 100-person strong engineering manpower that we have
in place."
For corporate India, one of the chief drivers of change has been the Internet. It is, increasingly, the
dominant channel used to either sell products or attract and engage new customers. Consequently,
marketing is going through its own revolution as it is forced to shift from engaging with a broader
market to a fragmented media landscape. The increasingly global marketplace means there is an
imperative for marketers to widen their net, leading to escalating IT costs attributable to the
marketing function.
Five years ago, marketing on the Internet in India would have meant designing in-house systems for
activities such as customer relationship management (CRM) or enterprise resource planning (ERP).
Products and tools from global software vendors were available, but integration and customization
often meant heavy up front capex spends. Now, the SaaS (software-as-a-service) wave--a delivery
model in which software and related data are centrally hosted on the cloud, and can be accessed
through a Web browser--is sweeping across the Indian business landscape as it has in other
economies.
"SaaS is extremely real in India and there is a large critical mass in adoption," said Sunil
Padmanabhan, research director for Gartner in India. "It is already upending marketing as we know it,
ushering in inexpensive, plug-and-play new ways of managing customer relationships, orchestrating
cross channel marketing, and implementing digital advertising."
It also provides inexpensive but sophisticated tools to mine and analyze volumes of data arising from
these activities to improve decision-making. However, much of the action to date has been in the small
and midsize business (SMB) space where the consumption of CRM and ERP tools has been fairly large.
Padmanabhan noted that while Oracle, SAP, and Microsoft are some of the lead implementers, a few
local players such as Ramco have also stormed the market, propelling the SaaS annual growth rate in
the region to 28 percent.
spreadsheets--was unable to meet this criteria. It was painful to manage, difficult to scale, lacked
accuracy, and was "just not solving the very urgent needs of the company," added Rakesh Bhatt, chief
operating officer (COO), who also oversees technology for Bajaj Finserv.
The company chalked out some very clear objectives for sales and marketing apps: it needed a
solution with unlimited scalability for end-to-end, new loan underwriting, and one that allowed them to
cross-sell multiple products on its existing customer database.
For Bajaj Finserv, Salesforce.com's offering boosted loan applications from 1,500 per day to a peak of
8,500 in a single day during the festival season. In particular, the facility for sending out SMS directly
from Salesforce.com to dealers to communicate loan approval has had a significant impact on loan
turnaround times, helping Bajaj to fulfil its ultimate goal in marketing the personal loan as a viable
alternative to credit card. Bhatt said overall productivity has sky-rocketed by up to 40 percent.
For all of SaaS's impressive gains in India, there are some things to watch out for and issues that need
fixing.
Gartner's Padmanabhan noted that while the allure of SaaS is plug-and-play, localization challenges do
crop up. Moreover, a balance needs to be struck between customization and standardization.
It is important, said Padmanabhan, to also understand savings over a five-year period so one can
incorporate true data migration and grow scalably--otherwise the complications from a haphazard
technology plan are guaranteed to eat into savings accrued from SaaS.
Almost all companies that were consulted said global SaaS companies located in India needed more
depth in the services provided by industry players. "Sometimes you have to drag vendors to get things
done," said Misra.
Topics: Cloud: How to Do SaaS Right, Cloud, Enterprise Software, India, SMBs