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SMBs to Grow 15 Percent, Contributing $15 Million Domestically

By SiliconIndia     
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Bangalore: The contribution of SMBs to domestic growth of country will touch $15 billion by 2015, with a Compound Annual Growth Rate (CAGR) of 15 percent, revealed a study by Zinnov, a globalization and market expansion advisory firm. The domestic IT spending is also expected to grow at a CAGR of 12 percent to reach $36 billion.
India currently has 10 million technology ready SMBs out of the total 50 million, as a result of modern SMBs embrace of technology for marketing and competing, revealed a study entitled Indian SMB ICT Adoption Insights.
The study split entire SMB into many sectors and found that retail section leads with 2 million firms which are ready for adoption and expansion. It?s expected to reach 2.5 million by 2015. There are 1.9 million professional service firms followed by 1.2 million manufacturing enterprises and 1 million hotels and restaurants. The education field is also expected to grow to 1.1 million from current 0.9 million.
According to the study, 4 million SMBs in India are currently using PCs, which is expected to grow at a rate of 30 percent by 2015. Two million SMBs are accessing internet and out of them five lakh has website of their own. However the challenges including unawareness of technology benefits, lack of clarity on return of investment, cluttered product portfolio, high investment in systems and technical support is still dragging the field back.
The Indian market is promising and challenging at the same time. We are optimistic about the growth outlook but there are serious concerns. Majority of SMBs still perceive IT adoption as a time consuming and complex process and therefore, prefer to stick to traditional processes. There is a need for categorical shift from legacy systems, and fresh investments for long-term growth,? said Kishan Bhat, Engagement Manager, Zinnov

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