The SMB (small and medium business) market in India is estimated to witness a growth of 15 per cent year on year, which will propel the IT spending in the sector to cross $18.5 billion (around Rs 1 lakh crore) by FY18, according to a combined study by IT industry body Nasscom and tech research firm Frost & Sullivan.
The report further reveals that of the overall technology solutions available, cloud adoption will be a key element to transform the ecosystem since it has low capex, lesser total cost of ownership (TCO), flexible storage options, and easy data management that attract SMB players. As a result, SaaS adoption by SMBs is growing at 25 per cent and it is expected to reach $370 million by FY18.
According to the study, IT firms are continuously developing their strategy roadmap for SMBs, with products being designed specifically for the segment, and having dedicated business units with relevant business metrics and focused go-to-market strategies.
"Technology is an enabler that can pave the way for being competitive, drive growth and integrate with global supply chains," said R Chandrashekhar, president, Nasscom.
There is an imperative need to create collaboration platforms for industry players where they can share best practises, enable easier access to funding, and network with likeminded people to create innovative IT solutions that are revolutionary, the report noted.
Presently, SMBs employ about 40 per cent of India's workforce, and contributes more than 17 per cent to the national GDP.