The Hindu Business Line : IT usage up in SMEs, says CII snap poll

THERE has been a significant increase in the usage of IT among the domestic small and medium enterprises (SMEs), according to a recent snap poll conducted by the CII.

The poll shows that all the respondents were using IT in their organisations while a similar poll conducted during the previous year had shown that only two per cent of the respondents were doing so.

The recent poll is the fourth in a series of surveys undertaken by the CII in 2003-2004.

It showed that the trend regarding application of IT for different functions has undergone a significant change with sales and marketing replacing finance as an area that attracts maximum IT usage within the organisation.

This is followed by human resource development (HRD), administration, finance, research and development and corporate affairs.

The other functions where IT finds significant usage are operations, manufacturing and production, distribution, logistics, HRD and services.

The respondents to the poll also indicated an increase in turnover due to the use of IT.

While 55 per cent of the respondents indicated an increase of less than five per cent in turnover, 37 per cent indicated an increase of 5-25 per cent.

Similarly, four per cent recorded an increase of 25-50 per cent in turnover, while an equal number recorded an increase of more than 50 per cent.

The poll also said that there has been an increase in the annual expenditure on IT by the sector over the previous year.

On an average, 64 per cent of the respondents spend up to five per cent of their turnover on IT hardware, software and manpower, while 28 per cent spend 5-10 per cent and only eight per cent spend more than 10 per cent.

The poll also indicated increasing awareness among the SMEs about having their own Web site or homepage.

While close to 81 per cent (up by eight per cent since last year) of the respondents have their own Web site, 19 per cent (down by eight per cent since last year) do not have a Web presence yet.

The presence on the Web has also helped the SMEs register huge savings, according to the poll.

While 20 per cent of the respondents stated that they had not saved money due to their own Web site, 29 per cent (up by five per cent since last year) reported savings on photocopying, brochures, and mailing expenses.

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