India’s SMB segment plays a significant role in India’s economy - employs ~40 per cent of India’s workforce, contributes >17 per cent to national GDP, has ~45 per cent share in manufacturing output and accounts for about 40 per cent of India’s total exports. Despite its size, the SMB segment is beset with many problems: highly unorganised and fragmented, supply chain inefficiencies, scalability and funding issues, etc. Further, SMBs have been facing stiff competition both in the domestic and global markets. This segment has therefore, a compelling need to streamline their operations, standardise processes, improve productivity/efficiency, adopt best practices and ensure quality products and services.
Several monetary and non-monetary challenges have traditionally deterred SMBs from technology adoption. Limited in-house IT expertise, need for greater flexibility and easy access to technical support are only some of them. The maturity of cloud models has been one of the strongest forces in disrupting the traditional IT consumption model eliminating the need for customers to buy, deploy and maintain IT infrastructure. With vendors taking greater responsibility for all of the infrastructure required to run the solution, bottom of the pyramid is definetely more receptive to solutions that can
help accelerate business growth. These changes are driving increased investments in IT solutions in the SMB segment that can enable meet business objectives.
For the IT industry in turn, India’s SMB market has been rapidly evolving as a key focus segment. IT firms are continuously evolving their strategic roadmap for the SMB market with products designed specifically for this segment, having dedicated business units with relevant business metrics, and focused go-to-market (GTM) strategies. The need of the hour is for cost-effective technological solutions backed by scalable business models that can easily help SMBs understand the impact of solutions on day to day business operations, measure Return on Investment and gain access to support through the selection, implementation and can help SMBs easily understand post-implementation stages.
This report jointly developed by NASSCOM and Frost & Sullivan highlights the changing ICT ecosystem catering to the Indian SMBs, highlights emerging opportunities as well as the challenges faced while operating in this space. This report also puts forth the critical success factors to ensure sustainable growth and includes case studies of large and emerging players that have devised successful growth strategies.
To readd the report in detail click here