Skip to main content

Navigating the Deep Tech Talent Shortage: Challenges and Opportunities for India's B2B SaaS Startups

Navigating the Deep Tech Talent Shortage: Challenges and Opportunities for India's B2B SaaS Startups

India's enterprise Software-as-a-Service (SaaS) sector is on a trajectory of rapid growth, revolutionizing industries with innovative solutions. 

However, this impressive journey is met with a hurdle that might impede its potential: a shortage of deep tech talent. 

A recent report by Nasscom in partnership with EY sheds light on this concern, highlighting how expertise gaps in areas like Artificial Intelligence (AI), Machine Learning (ML), and advanced computing might hinder the expansion of India's B2B SaaS firms.

Titled 'Breaking Ground: Unraveling the deep tech potential in Indian B2B SaaS,' the report underlines that deep tech, though promising, demands specialized proficiency. Yet, the challenge lies in sourcing and retaining skilled professionals due to soaring demand and limited supply. 

This scarcity of talent, coupled with inadequate deep tech infrastructure, is a growing concern that might affect the sector's growth.

The findings are a result of face-to-face interviews with chief experience officers (CXOs) of leading SaaS firms. 

Around 80 percent of these CXOs expressed apprehension about the talent gap in deep tech and its potential repercussions on growth. 

This concern echoes the sentiment shared by venture capital firm Accel's Prashanth Prakash, who recently highlighted the absence of a substantial ecosystem for deep tech, including AI, ML, and biotechnology, in India.

Among the various facets of deep technology, Artificial Intelligence and Machine Learning stand out as the most leveraged, accounting for approximately 54 percent of use cases. 

Big data or descriptive analytics follows at 39 percent, with intelligent automation trailing at 7 percent.

The report suggests that attracting and retaining talent requires creating a stimulating work environment and providing incentives that foster a culture of innovation. 

The deep tech talent shortage is not the sole concern; CXOs also emphasized the dearth of patient capital—funding that endures extended periods without immediate returns—as another potential obstacle to growth.

Balancing investors' expectations with the need for sustained financial support becomes crucial for deep tech startups. 

Despite these challenges, the report underscores the substantial potential of deep tech-focused B2B SaaS firms to unlock an Annual Recurring Revenue Compound Annual Growth Rate (ARR CAGR) of 30-50 percent.

Moreover, the report reveals that 25 percent of Indian B2B SaaS companies analyzed demonstrated a focus on innovative deep tech. 

These companies have collectively filed over 1,400 patents in the past five years, compared to just 574 patent filings in the preceding decade. This trend exemplifies the growing inclination towards leveraging intellectual property and innovation to drive growth.

Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at Nasscom, emphasized that as India advances in this sector, prioritizing innovative deep tech and concurrently addressing growth barriers are pivotal to establishing a globally competitive and attractive deep tech-led B2B SaaS destination.

Therefore, India's B2B SaaS sector holds tremendous potential for transformative growth. 

However, tackling the deep tech talent shortage, fostering a conducive work environment, addressing funding challenges, and nurturing a culture of invention will be critical to realizing this potential and positioning India as a dominant player in the global deep tech landscape.


Popular posts from this blog

Inspirational Story Of Ferrari - Amazing Adviser

Inspirational  Story Of Ferrari Hello friends, today I'm going to discuss one of the most popular sports car companies in the world - Ferrari. Today, each sports car lover dreams to get a Ferrari. It keeps gaining popularity till today. This company was founded by Enzo Ferrari. So let's get to know the success story of Ferrari. Also Read, Success Story Of Amul Success Story of Dominos Pizza The story starts with 18 Feb 1898 when Enzo Ferrari was born in Italy. Enzo was fond of cars right from his childhood. At 10 yrs of age, he went to see a car race with his father.  At that point in time, he decided that he would become a racing driver. After that, he attended many car races. After completing his graduation from Modena College, he worked as a teacher.  But after a few months, he had to join the Italian army for the first World War. In 1916, he suffered a lot with emotions as well as the economy when his brother and father died. After returning from World War, he began to find

Inspirational Story Of BMW - Amazing Adviser

  The wonder of science has shown many miracles in today's age in the form of spectacular vehicles.  Today I will discuss about a German company that specializes in designing cars, bikes and engines - BMW. It came into being before 101 years and is known for its expensive and luxury cars like Rolls Royce and Mini.  But do you know that BMW was in the list of those companies which were restricted to produce any kind of vehicles during the time of World War?  And in that period, this company started making bicycles and kitchen utensils.  Now let's go to the beginning of the story.  Also Read Success Story Of Ambassador Car   Success Story Of Jaguar   Success Story Of UBER     The founder of BMW was Karl Friedrich Rapp. He was born on 24 September 1882 in Germany.  He became a mechanical engineer and opened his start up named Karl Rapp Motorenwerke where mostly aircrafts and their engines were made.  When the first world war started, there was a huge demand of aero engines.  Thus,

Success Story Of Colgate, One Of The Bestselling Toothpaste Brand

Success Story Of Colgate, One Of The Bestselling Toothpaste Brand "It cleans your breath while it cleans your teeth", can you guess whose slogan is this.  If you have guessed correct then today I'm going to tell you the success story of one of the best selling toothpaste brands of India i. e. Colgate.  It's popularity can be measured by thousands of situations where the term toothpaste is replaced by Colgate in India.  Do you know, this brand came into being almost 210 years ago, introduced by Williams Colgate .  And initially, this company used to produce soaps, not toothpaste that too in jars and not tubes.  So now, let's get back to the beginning of the story.  Also Read Success Story Of Haldiram Bujhia Success Story Of Amul How Maggie Became Successful? The founder of Colgate, Willam Colgate was born on 25 Jan 1783 in England. His father was a farmer.  But later, they shifted to Maryland in the US where his father along with a friend began to make candles