NEW DELHI: Small and medium businesses are expected to spend about $18.5 billion (Rs 1.11 lakh crore) on information technology by FY18, driven by growing adoption of cloud and mobility solutions, a study has said.

According to a Nasscom study, conducted by research firm Frost & Sullivan (F&S), Indian small and medium businesses (SMBs) spent about Rs 47,200 crore ($8.7 billion) on IT in FY2013.

Of this, 45 percent was spent on hardware, while 40 percent was on IT services (implementation, support and training) and 15 percent  was on software licensing and software as a service (SaaS).

"SMBs play a critical role in the Indian economy in terms of GDP and employment generation. They face significant challenges in the volatile business environment and technology can help them compete on the global platform," Nasscom president R Chandrashekhar said.

He added that Indian IT players also need to create specific solutions for the SMB sector, tailor-made to suit their specific needs, he added.
READ MORE: IT Industry Looks for Budget Sops to Reboot: Nasscom Chief
Microsoft Expect budget Guidance on Infotech Use