SMBs spending on IT to grow

SMBs spending on IT to grow

By agencies   |   Tuesday, 20 June 2006, 07:00 Hrs
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BANGALORE: Small and medium businesses (SMBs) spent Rs 21,369.9 crore on information technology infrastructure in 2005, according to an ACNielsen study.

According to it, India's SMBs are focusing on upgrading their IT infrastructure where the overall spends is likely to grow. The main focus areas for Indian SMBs in the technology area are IT staff training and data protection and security.

SMBs operating in IT/ITES (24 percent) sector are likely to increase their IT budget the most in the next two years with those operating in the pharma sector (18 percent) following closely, a release said.

The most common barriers to IT adoption, according to the SMBs, are inadequate budget and lack of alignment between business goals and IT efforts.

The total IT budget for a majority of SMBs based out of Bangalore is within a range of Rs 50 lakh per year (54 percent) and for 16 percent of the companies it is close to Rs one crore.

About 36 percent respondent thinks that the budget is likely to increase by ten percent, the release said.

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