SMEs in Gujarat raise spending on IT infra
Updated: May 28, 2013 12:19:09pm
Ahmedabad, May 28 (KNN) Small and Medium Enterprises (SMEs) in Gujarat are putting more money into information technology (IT), seeking right technology to ease their business routines and drive productivity, according to IT hardware and software component providers.
There has been a 15-20 per cent increase in IT spending among SMEs in the state in the past six months.
Earlier, smaller businesses found it excessive to spend on IT infrastructure or hire a dedicated IT manager, it was the owners who use to take the purchase and maintenance decisions.
"These days, large industries are pretty cautious as far as increasing their IT spending is concerned. However, SMEs are not so prone to global economic upheavals and are growing domestically. Hence, they have increased their expenditure on IT infrastructure in a bid to become more competitive," committee member and immediate past president of the Ahmedabad Computer Manufacturers' Association, K J Thakker was quoted as saying in Business Standard.
The spending of SMEs on IT infrastructure including both hardware and software has increased up to 1-2 per cent of its sales revenues.
SME with sales revenues of Rs 50-100 lakh now spends around Rs 100,000 a year on IT, similarly SME with a turnover of Rs 5-10 crore spends around Rs 10-12 lakh per year on IT expansion.
According to an Ahmedabad based IT professional, the rise in IT spending is also due to increasing demands for advanced automation and operational efficiency through the use of industry-specific software by the clients.
Among SMEs, auto-ancillaries and engineering industries, followed by BFSI (banking, financial services and insurance), pharmaceuticals, telecom and textiles have seen some of the highest increases in IT spending, according to a media report.
"Both overseas and domestic clients have been demanding use of advanced ERP systems and other software. Plus, SMEs in Gujarat have become more aware of international standards in software up gradation, and are leaving no stone unturned to match those standards. Moreover, SMEs are more flexible than large enterprises as far as hiking the IT budget is concerned," Thakker added.
According to the small entrepreneurs here, investing in IT infrastructure has become an integral part of doing business today which improves operational efficiency, and keep abreast of new software available in the market, especially in the engineering and designing space.
According to a study by a leading management consultancy, the country is home to around 50 million SMEs currently of which 10 million are technology-ready. Transforming itself from the traditional ‘pen & paper’ business culture, SMEs today are increasingly adopting technology for the betterment of their business.
Modern SMEs are investing heavily on tools like computers, internet and website to market them and compete in global /domestic markets.
The study revealed that today five lakh SMEs in India have websites and two million SMEs are accessing the Internet. Increased adoption of modern technology by SMEs is also another significant factor that will fuel the growth of this sector.
Four million SMEs in the country are using computers which is expected to grow at thirty per cent from by 2015, resulting in doubling the base of SMEs with computers, reveals the study.
SMEs contribute more than 40 per cent to the Indian GDP while their spending on IT is 30 per cent of India’s total IT spending. The Indian SME market is worth USD 5 billion and there are over 11 million SME units in India that produce more than 8,000 products. (KNN)
There has been a 15-20 per cent increase in IT spending among SMEs in the state in the past six months.
Earlier, smaller businesses found it excessive to spend on IT infrastructure or hire a dedicated IT manager, it was the owners who use to take the purchase and maintenance decisions.
"These days, large industries are pretty cautious as far as increasing their IT spending is concerned. However, SMEs are not so prone to global economic upheavals and are growing domestically. Hence, they have increased their expenditure on IT infrastructure in a bid to become more competitive," committee member and immediate past president of the Ahmedabad Computer Manufacturers' Association, K J Thakker was quoted as saying in Business Standard.
The spending of SMEs on IT infrastructure including both hardware and software has increased up to 1-2 per cent of its sales revenues.
SME with sales revenues of Rs 50-100 lakh now spends around Rs 100,000 a year on IT, similarly SME with a turnover of Rs 5-10 crore spends around Rs 10-12 lakh per year on IT expansion.
According to an Ahmedabad based IT professional, the rise in IT spending is also due to increasing demands for advanced automation and operational efficiency through the use of industry-specific software by the clients.
Among SMEs, auto-ancillaries and engineering industries, followed by BFSI (banking, financial services and insurance), pharmaceuticals, telecom and textiles have seen some of the highest increases in IT spending, according to a media report.
"Both overseas and domestic clients have been demanding use of advanced ERP systems and other software. Plus, SMEs in Gujarat have become more aware of international standards in software up gradation, and are leaving no stone unturned to match those standards. Moreover, SMEs are more flexible than large enterprises as far as hiking the IT budget is concerned," Thakker added.
According to the small entrepreneurs here, investing in IT infrastructure has become an integral part of doing business today which improves operational efficiency, and keep abreast of new software available in the market, especially in the engineering and designing space.
According to a study by a leading management consultancy, the country is home to around 50 million SMEs currently of which 10 million are technology-ready. Transforming itself from the traditional ‘pen & paper’ business culture, SMEs today are increasingly adopting technology for the betterment of their business.
Modern SMEs are investing heavily on tools like computers, internet and website to market them and compete in global /domestic markets.
The study revealed that today five lakh SMEs in India have websites and two million SMEs are accessing the Internet. Increased adoption of modern technology by SMEs is also another significant factor that will fuel the growth of this sector.
Four million SMEs in the country are using computers which is expected to grow at thirty per cent from by 2015, resulting in doubling the base of SMEs with computers, reveals the study.
SMEs contribute more than 40 per cent to the Indian GDP while their spending on IT is 30 per cent of India’s total IT spending. The Indian SME market is worth USD 5 billion and there are over 11 million SME units in India that produce more than 8,000 products. (KNN)
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