‘Small is BIG’ is an oft quoted statement when it comes to India’s small & medium businesses (SMBs) segment – big opportunities, big business AND a big challenge. NASSCOM, in partnership with Frost & Sullivan, has put together a soon-to-be released report aimed at understanding the SMB customer with an action plan to crack this market.
SMBs in India is a big impact segment…..
But it is also a segment beset with multiple problems:
Information Technology – A Panacea??????
To help streamline operations, standardise processes, reduce costs, improve productivity/efficiencies, adopt best practices, ensure quality products & services
The IT industry has been focusing on increasing its penetration into the SMB market. Both service providers and product firms have developed various SMB-specific solutions and the advent of cloud technology has further spurred IT adoption.
As a result, IT revenue from the India SMB segment touched USD 8.7 billion in FY2013 and is expected to grow at 15 per cent CAGR to cross USD 18 billion over the next five years.
Although the retail segment accounts for ~43 per cent of total SMB units in India, this segment presents a huge challenge in terms of IT penetration because of its fragmented nature and geographic dispersion.
From the perspective of the IT industry therefore, manufacturing, education, healthcare, real estate & construction and hospitality would be the low-hanging fruits.
SMBs: Cracking the market
This would require the IT industry to address……
……And develop a strong business strategy to monetise the opportunity