Indian IT firms are targeting small and medium-sized enterprises for expansion, mapping out plans to tap what it describes as the fastest growing segment in a developing economy.

According to a report by the Times of India, the local industry was aiming at spreading IT adoption through the software-as-a-service model (SAAS).

Using SAAS, information technology services will be offered on a per-usage basis, similar to paying a utility service such as electricity, water, or cable TV. This will provide affordable monthly pricing schemes attractive to the SME market.

Under the setup, an IT firm would provide an application platform and end-user help desk, while offering hosting and maintenance services. End-user SMEs would only need an Internet browser to access their services and will be charged based on the services they would utilize.

Several SME clusters in India were pilot-tested for the SAAS model, particularly in Mallapur in Hyderabad and Adityapur in Jamshedpur.