Oracle is scaling up its team within the SaaS space in India with an eye on winning deals from the public sector entities.
“We are placing a dedicated team within the SaaS space to work across lines of businesses specifically catering to the public sector, with the goal of achieving long-term success and enabling hypergrowth in India by unlocking the business potential in the public sector. To push this strategy, we are hiring senior sales leaders and solution architects,” Deepa Param Singhal- Vice-President, Cloud Applications, Oracle India, told BusinessLine.
Oracle’s strategy for India includes localisation of cloud apps, availability in the India data centre space and its public sector plans.
Singhal said, “Our long-term growth strategy for the SaaS market in India includes capitalising on our ongoing momentum through consistent innovation. We are going deeper in our core industries where we work with all top banks, manufacturing and ITES companies. Given the demand, the public sector market remains a key industry for us as we focus on the localisation of our products and solutions in India.”
According to Singhal, some of the key drivers of growth include Citizen Engagement & Outreach, EASE - Banking Reform (PSU), Digitally Inclusive Bharat (Future Workforce), and Mission Mode Projects which will allow the company to focus on the public sector growth strategy.
Further, the tech major has built revenue streams in the public sector with Oracle CX Unity and India Payroll. In terms of recent developments, the Oracle Unity Customer Data Platform is now live in its India data centre. Its HR Payroll solution is expected to go live in its India cloud region in the upcoming quarter.
India is also one of the first few countries where Oracle has opened two local cloud regions (Mumbai and Hyderabad) in quick succession. Globally, Oracle plans to have at least 44 cloud regions by the end of 2022, said Singhal.
Singhal said the company was optimistic about revenue generations from its applications business.
“In terms of Oracle’s applications business, India is one of the fastest-growing regions within JAPAC, delivering double-digit growth year-on-year across all SaaS pillars in FY22,” Singhal said.
Overall, the Fusion applications business in India has grown 50 per cent YoY in FY22. The ERP business has been its biggest growth driver in India, with a 70 per cent YoY growth in FY22.
The growth in India is driven by a “large number of manufacturing providers who’ve standardised on ERP,” as per Singhal.
It has also witnessed significant growth from its Human Capital Management (HCM) and Customer Experience (CX) businesses which recorded double-digit growth.
“Broadly speaking, BFSI, IT/ITes, and professional services are the top sectors contributing to our HCM growth,” she said.
“The public sector partnerships and BFSI sector are adding to our growth in CX, particularly in India. We’re also working with major money centre banks and leading logistics companies in our financial services vertical to automate B2B commerce from within the Oracle ERP Cloud. Federal Bank, Kotak Mahindra Bank, SBI Card, ICICI Bank, RBL among others are some of the prominent names in this segment,” she further added.
In terms of the future growth, the company expects its cloud business, which grew 22 per cent this year, to organically grow more than 30 per cent in constant currency in FY 2023, globally.
Talking about the growth of start-ups in the SaaS space and its impact on the business, Singhal said, “The paradigm shift to an on-demand, subscription-based model opens plenty of opportunities for start-ups to make their foothold in the industry, and India is one market that is specifically well-positioned to lead this charge.”
“However, this is not an area of concern for us because we are in a strong position with a complete stack of solutions from platform to applications,” she said.