SMBs to Contribute Over one Third of the Domestic IT spend by 2015
The overall domestic IT spending is expected to grow at a CAGR of 12% to reach USD 36bn by 2015
Feb 10, 2012
Zinnov has released its latest study titled ‘Indian SMB ICT Adoption Insights’ highlighting the current state of IT adoption in the SMB segment in India, and predicting the likely trends going forward. The study provides a detailed analysis of the different opportunities, challenges and scope related to IT spending and technology adoption in the sector that may result in SMBs contributing to over one third of the total domestic IT spend by 2015.
The study states that while the overall domestic IT spending is expected to grow at a CAGR of 12% to reach USD 36bn by 2015, SMBs at the same time will grow at a CAGR of 15% contributing USD 15bn by 2015. The Zinnov reports states that the country is home to around 50 million SMBs currently of which 10 million are technology-ready. Transforming itself from the traditional ‘pen & paper’ business culture, SMBs today are increasingly adopting technology for the betterment of their business. Modern SMBs are investing heavily on tools like PCs, internet and website to market themselves and compete in global /domestic markets.
Commenting on the study, Kishan Bhat, Engagement Manager, Zinnov, said, “The Indian market is promising and challenging at the same time. We are optimistic about the growth outlook but there are serious concerns which need to be addressed immediately. Majority of SMBs still perceive IT adoption as a time consuming and complex process and therefore, prefer to stick to their existing traditional processes. There needs to be a categorical shift from legacy systems, and some fresh investments made from a long-term growth perspective”.