Business Daily from THE HINDU group of publications
Thursday, Oct 25, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Thursday, Oct 25, 2007 ePaper | Mobile/PDA Version |
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Info-Tech
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Software Industry & Economy - SSI Web Extras - Outlook Small, medium biz may hike IT spending this year Ambar Singh Roy Kolkata, Oct 24 Small and medium businesses (SMBs) in India (under 1,000 employees) are expected to spend $8 billion on their IT-related investments in the calendar year 2007, representing an increase of 23 per cent over similar spend last year, according to a study conducted by the New York-based Access Markets International (AMI) Partners Inc. The study states that manufacturing sector alone would account for $2.9 billion or 36 per cent of the pie. Verticals such as banking & financial services, insurance, real estate and professional services would be the top drivers of Indian SMBs’ IT spending in 2007 and register a growth of around 25 per cent over 2006. Professional services include accounting, auditing & book keeping, advertising and consulting, data processing, legal and PR services, engineering, logistics, etc. It is pointed out that while small businesses were investing aggressively in basic computing infrastructure, medium businesses were focussed on boosting IT infrastructure for revenue growth and customer convenience.
Besides securing the means to better business management, communications and networking infrastructure, many existing and new SMBs were looking at augmenting Internet facilities and adopting enhanced security measures. The study opines that high employee mobility, increased competition and expansion in terms of office locations have spurred SMBs in India to embrace IT and the Internet. This has increased the threat of viruses and spam. Consequently, Indian SMBs have spent nearly $160 million over the last 12 months on security-related products and services. Also, very small businesses — or the ones with less than 19 employees — were seeking out IT infrastructure and services to adopt cost control measures and face increasing competition and the challenges of globalisation. This, in turn, has fuelled “above-average spending” on IT infrastructure by even very small businesses. Within this vertical, sub-verticals such as readymade garments, food processing, retail and wholesale pharmaceuticals were the most progressive in their IT adoption initiatives, according to the AMI Partners’ study. More Stories on : Software | SSI | Outlook
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