IT usage on the rise among small enterprises: survey

Monday, 12 April 2004, 19:30 IST
Printer Print Email Email
NEW DELHI: There has been a significant increase in the usage of IT by India's small and medium enterprises, as companies strive to cut costs and boost profitability, showed a survey Sunday. Faster execution, enhanced productivity and reduced costs were the main reasons for the sharp growth in the usage of IT, said the survey conducted by the Confederation of Indian Industry (CII). According to the survey, all the respondents indicated an increase in their turnover by using IT applications. While 55 percent of respondents indicated an increase of five percent in their turnover, 37 percent witnessed a jump of between five and 25 percent, showed the survey. Four percent of respondents recorded an increase of between 25 and 50 percent in their turnover while another four percent saw their turnover increasing by as much as 50 percent. "The increase in turnover could be attributed to various benefits accrued from IT application by the small and medium enterprises," said the CII report. Sales and marketing departments in small and medium enterprises attracted maximum IT usage, followed by human resource development, administration, finance, research and development and corporate affairs. The other functions where IT finds significant usage are operations, manufacturing and production, distribution and logistics. "Faster execution, enhanced productivity and reduced costs are the top three benefits of IT usage as mentioned by the respondents," said the survey report. "The other benefits cited in the survey are better customer service, improved quality and better relationship with partners, among others." The survey indicated an increase in awareness among small and medium enterprises about having their own website or homepage. While 81 percent of respondents have their own website, 19 percent did not yet have a web presence. According to the survey, there has also been an increase in the annual expenditure on IT by small and medium enterprises over the past year.
Source: IANS
siliconindia