Hotline: 1800 102 2007
X
Loading
Search Business Opportunities
2014-07-09

IT spending in SMB sector to cross $18.5 billion by FY18: Report

Indian SMBs are rapidly innovating and are adopting technology solutions to enhance competitiveness in the dynamic global and domestic business environment.

National Association Software and Services Companies (NASSCOM) recently launched ‘Indian SMB Market’ - Monetizing emerging opportunities in association with Frost & Sullivan. The elements of research, devised jointly by NASSCOM and Frost & Sullivan reveal that the SMB market is estimated to witness a Y-o-Y growth of 15 % (CAGR), which will propel the IT spending in the sector to cross USD 18.5 billion (Rs. 1,00,000 crore) by FY18. 

 

The report also highlighted that Indian SMBs are rapidly innovating and are adopting technology solutions to enhance competitiveness in the dynamic global and domestic business environment. The IT firms are continuously developing their strategies roadmap for the SMB market with products designed specifically for this segment, having dedicated business units with relevant business metrics and focused go-to-market strategies.

 

While launching the report, R. Chandrashekhar, President, NASSCOM stated that “Small and Medium Businesses across all verticals play a critical role in the resurgence of Indian Economy and contribution to GDP and employment generation. SMBs face significant challenges in the volatile business environment and global competition. Technology is an enabler that can pave the way for being competitive, drive growth and integrate with global supply chains. Our Industry members are developing innovative vertical focused solutions leveraging the SMAC stack, to support SMB customer in India. NASSCOM will partner with Government and Industry associations to ensure successful adoption of IT.”

 

Today, India’s SMB segment is recognised as one of the critical pillars of the Indian economy. The report highlights that SMBs employ about 40% of India’s workforce and contributes more than 17% to national GDP. Despite its size the SMB segment is facing many challenges, like fragmentation, unorganized growth, and scalability issues among others. Hence, there is a compelling need to streamline operations, standardise processes, and enhance productivity and quality of products & services. It is imperative that these needs are addressed as they will drive investment in IT solutions domain.

 

Of the overall technology solutions available, cloud adoption will be a key element to transform the ecosystem. Advantages of cloud services such as low capex, lesser TCO, flexible storage options and easy data management is attracting SMB players. As a result, SaaS adoption by Indian SMBs is growing at a CAGR of 25% and is expected to reach USD 370 million by FY18. A significant portion of SMBs would continue to focus on business software and enterprise applications, mainly for an integrated business view.

 

Accelerating SMB IT adoption requires all stakeholders - state government, industry associations, MSME, and other relevant players, to work jointly to encourage IT adoption and increase awareness of existing IT solutions. There is also an imperative need to create collaboration platforms for industry players where they can share best practises, enable easier access to funding and network with likeminded people to create innovative IT solutions that are revolutionary.

Related opportunities
  • Fine Dine Restaurants
    Do you want to set up your own Italian food..
    Locations looking for expansion Uttar Pardesh
    Establishment year 2010
    Franchising Launch Date 2011
    Investment size Rs. 50lac - 1 Cr.
    Space required 50
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Bulandshahr Uttar Pardesh
  • Casual dine Restaurants
    Café Udupi Ruchi, is a restaurant which will provide the..
    Locations looking for expansion Karnataka
    Establishment year 2014
    Franchising Launch Date 2017
    Investment size Rs. 20lac - 30lac
    Space required 70 - 4500 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Bangalore Rural District Karnataka
  • About:Social drinking is a norm in today’s world and keeps..
    Locations looking for expansion Maharashtra
    Establishment year 2006
    Franchising Launch Date 2017
    Investment size Rs. 50 K - 2lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
  • Fine Dine Restaurants
    About Kumarakom :-Kumarakom is an established chain of restaurants that..
    Locations looking for expansion Tamil Nadu
    Establishment year 2001
    Franchising Launch Date 2016
    Investment size Rs. 1 Cr. - 2 Cr
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Chennai Tamil Nadu
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities