Salesforce.com, Inc. (NYSE:CRM) will inject into the Indian economy $4.2 billion while adding close to half a million jobs by the year 2020. This is according to a report released on Wednesday by the International Data Corp (IDC ). IDC, a global leader in data gathering and statistical analysis, compiled the report in conjunction with Salesforce.
Cloud spending surge
The report reveals that the amount of cloud spending has increased dramatically in India over the years and will continue the same trend. From 2015 to 2020, the spending will increase at an annual compounded growth rate of 26%. Spending on IT will not be as high though but it will still grow at an annually compounded rate of eight per cent in the five years between 2015 and 2020.
In hard figures, the public cloud spending will have reached a high of slightly over $1.4 billion by 2020. In the run up to the same period, Salesforce will have created a total of 136,000 direct job positions in India as its customer base grows. At the same time, Salesforce and its ecosystem will add another 351,000 indirect job positions. These jobs will mostly be created along the distribution and supply chains.
Boost to the GDP
Additionally, Salesforce will also boost the gross domestic product of India. In the period between 2015 and 2020, the benefits accruing from cloud computing by Salesforce customers in India will inject to the country’s GDP a total of $4.2 billion.
In the last year, the International Data Corp estimated that cloud computing was responsible for close to $8 billion of the revenues generated by business organizations.
“For every rupee Salesforce makes in India in 2016, the Salesforce ecosystem should make 2.7 rupees. By 2020, that ratio should be 3:8,” the report says.
On a global level, the International Data Corp projects that Salesforce’s ecosystem will be responsible for the generation of $389 billion in the world’s combined gross domestic product. It will also be responsible for creating close to two million direct jobs all over the globe. Many more jobs will be created indirectly.
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