Manufacturing firms still reluctant to adopt technology
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Bangalore: The acceptance of ICT in manufacturing sector is largely restricted to finance and accounting, but remains very badly low for solutions center to manufacturing processes such as procurement and production planning. The National Association of Software and Services Companies (Nasscom) and National Manufacturing Competitiveness Council's (NMCC) report says that the adoption level for financial and accounting solutions stood at 75 percent, surpassing adoption levels in processes such as procurement and production planning (18 percent) and centralized solutions like ERP (6 percent), reports the Hindu Business Line. "Small firms have low levels of core ICT solution usage, due to lack of internal expertise needed to utilize the potential of implemented solutions," the report said. The availability of a large pool of finance and accounting professionals qualified and trained to use such solutions/packages. Also, mandatory tax and related compliance requirements drive the need for financial IT products. It added that manufacturing companies in India need to leverage core ICT at a faster pace in order to be able to compete globally with countries such as China and Brazil. While the hardware prices have been declining overtime, the software and IT services costs have not shown downward bias, the situation is exacerbated when the cost of IT is evaluated from a lifecycle perspective rather than just one time initial costs. Customization of solutions is also another challenge that hampers the IT adoption.

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