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The phrase "indicates the need" is correct and usable in written English.
It is often used to show that something suggests or demonstrates the necessity or requirement for something else. Example: The sudden decrease in water supply indicates the need for stricter conservation measures to be implemented.
Exact(60)
That institutional behavior indicates the need for a few more charts showing what happened to priests with credible charges in their past.
Indeed, perhaps the very fact that the law on defendant anonymity has changed so much indicates the need for a flexible approach.
The relatively small size of the data set indicates the need for further testing and development.
This fact indicates the need for urgent introduction of a proportional carbon tax.
This result indicates the need of organic fertilizer application at Fedis site beside Bradyrhizobium inoculation.
This indicates the need of inoculation to boost grain yield at Fedis site.
This indicates the need to improve the way this content has been worked in the program.
An ISS >20 indicates the need for immediate stabilisation treatment [1].
It also indicates the need for careful monitoring of potential AEs.
This indicates the need to measure this key quantity to better interpret the resulting information.
Accepted social networking indicates the need to communicate and to advocate relevant community issues.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com