Indian midmarket enterprises have truly embraced the power of digital, to be more agile, flexible, and scalable, says an IDC study commissioned by SAP India. As they embark on their journey to cloud, they are gearing up to adapt to business disruptions while competently capitalising on the changing business landscape, the study added.
While priorities varied from industry to industry, the aim is to service customers better through touchless solutions, enable uninterrupted operations through automation, and provide a seamless user experience through the adoption of cloud. The IDC InfoBrief commissioned by SAP India indicated that 82 per cent of midmarket enterprises are reducing their focus from on-premises business applications.
“While digital transformation can accelerate growth, it is innovative business models, cloud transformations and reconnecting with customers which will determine long-term and sustainable success,” said Kulmeet Bawa, President, and Managing Director, SAP Indian Subcontinent. “The Indian midmarket segment is poised to play a significant role in the country’s quest to become a $5 trillion economy. SAP is committed to co-create, empower and enable mid-market enterprises in their digital-first business and growth journey,” he added.
Move towards cloud
The rising trend of digital resiliency among midmarket enterprises showcased an increasing optimism to invest more in cloud, cybersecurity, analytics, and business intelligence. The orchestration capabilities to interoperate across different cloud environments is considered as one of the top drivers for cloud-related investments in 2022. The findings also indicated that 68 per cent of midmarket enterprises either intend to increase by 5-10 per cent or retain their IT spend in 2022.
The infobrief indicated that 75 per cent of midmarket enterprises will return operations to pre-pandemic levels by end of 2021, 83 per cent of enterprises are focusing on resiliency objectives like business continuity. The study said that 58 per cent of enterprises have an ERP system providing full visibility of operations across different departments and that IT & ITeS, retail and engineering, construction and operations sectors were leading this adoption
“For small and midsize businesses, 2021 represents the dawn of a golden age. Based on IDC research, it is very clear that smart business leaders are investing in cloud technologies that will help them meet their future goals. Doing so is not just what’s right for the business but also for their employees, customers, community, and our country’s economy,” added Subramanian Ananthapadmanabhan, Vice-President, SAP Indian Subcontinent. “It is heartening to witness Indian midmarket enterprises embrace the power of digital, to be more agile, flexible, and scalable enterprises of tomorrow.”
This study assessed over 350 Indian midmarket enterprises with annual revenue of ₹500 crore to ₹2000 crore. The respondent demographics consisted of 55 per cent CXOs and 45 per cent directors with responses across all dimensions of digital resiliency such as operational, workforce and customer, brand and reputation, leadership and organisation, and financial resiliency. The industries covered by the infobrief were chemicals, industrial manufacturing, life sciences, professional services, retail & consumer packaged goods, and engineering, construction & operations.
Commenting on the study, Sharath Srinivasamurthy, Research Director, Enterprise Solutions & ICT Practices, IDC India said, “While the power of digital has been well embraced by the midmarket enterprises; the surveyed enterprises acknowledged agility, performance, and availability as the key drivers for adoption of cloud platforms. This rising trend of digital resiliency is prominent across industries such as manufacturing, healthcare and pharma, and professional services.”