Understanding Indian SMB behavior towards ICT Adoption

This report is to present opportunities available in the SMB sector for IT product or service providers. This study has been conducted among 1400 SMBs across 40 Cities in India. Following parameters were covered during this study: Awareness, Adoption and Usage of ICT solutions among SMBs (For various functions like Communication, Streamlining finance and its tandem Products, HR and Payroll Management, Quality Management, Production and Designing, Centralized System and Inventory Management) Drivers and Inhibitors to Adopt ICT People influencing IT related decision making Business pain points of SMBs Potential Investment in ICT.



ResearchFox Consulting, a market research service provider, today released the key findings of Understanding Indian SMB behaviour towards ICT adoption?, a detailed report illustrating how service providers can penetrate into the SMB segment by delivering unique IT services to small and medium businesses (SMBs). ResearchFox estimates that the Indian SMB IT spend in 2013-14 is $14. 82 billion, and will reach $24. 05 billion by 2016 at a CAGR of 12.9 %. The report reveals, this growth will be ridden by both internal (Better business process flow, streamlining financial activities, and Inventory Control) as well as external factors (Client Requirement, Compliance mandate, and competitor pressure). With Over 44.7 Million SMBs (1 - 999 employees), India as a country has evolved as a bigger hub of SMBs. In the current state of affairs when the overall growth of India is deteriorating significantly and the GDP of the state finds out a marginal growth the small and mid-sized businesses can be reckoned as an unbending answer to the growing puzzle.



With the help of our study, we inferred that the behaviour of SMBs towards ICT Adoption depends on various parameters like Business vertical, Year of Existence, Employee Size of the company, Revenue of the company and the generation of the owner. This study will help product/service providers to understand better, develop, market and sell IT products/services to the small and medium businesses and hence improve their ability to link the value of their product/services to the specific SMB audience.



Key findings from this research include the following:

- The Addressable Indian SMB market for ICT service provider is approximately 12 million units

- 60 % addressable Indian SMBs are growing at an annual pace of more than 5%

- The second-largest addressable segment for ISVs and IT vendors is professional services companies at around 14.66 million.

- With 2.23 million educational institutes in India. ICT spends in this sector has a vast potential

- 60 % SMB decision makers say that information technology would be helpful in the business areas of finance and accounting, business process and development of new businesses

- 22 % SMBs have deployed one or the other module of ERP solutions to heighten their productivity



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Chapter 1: Introduction

1.1. Research Overview

1.1.1. Purpose And Scope

1.1.2. Report Description

1.1.3. Key Take – Aways

1.2. Research Methodology

1.2.1. Our Approach

1.2.2. Methodology

1.2.3. Overall Framework

1.2.4. Survey Participant profile

1.2.5. Forecasts Assumption

1.3. SMB Market

1.3.1. Markets Covered

1.3.2. Segment Definition

1.3.3. Industry Trends

1.3.3.1. ICT Awareness Among Indian SMBs

1.3.3.2. ICT Deployment Among Indian SMBs

1.3.3.3. ICT Usage Among Indian SMBs

Chapter 2: Executive Summary

2.1. Abstract

2.2. Overall Indian SMB IT Market Size

Chapter 3: Market View

3.1. Market Ecosystem

3.1.1. Changing IT landscape and Market scenario

3.2. Value Chain Analysis

3.3. Market Dynamics

3.3.1. Drivers

3.3.1.1. By Age Of The Company

3.3.1.2. By Verticals

3.3.1.3. By Ownership Generation

3.3.1.4. By Revenue Size

3.3.1.5. By Employee Size

3.3.1.6. By Growth Of The Company

3.3.1.7. Drivers (Better Business Process

Flow, Streamlining Financial Activities, Client Requirements, Compliance Requirements, Better Inventory Control And Competitor Pressure)

3.3.1.8. Drivers for Cloud adoption

3.3.2. Inhibitors

3.3.2.1. By Age Of The Company

3.3.2.2. By Verticals

3.3.2.3. By Ownership Generation

3.3.2.4. By Revenue Size

3.3.2.5. By Employee Size

3.3.2.6. By Growth Of The Company

3.3.2.7. Inhibitors (High Prices Of IT Solutions, Lack Of IT Budget, Lack Of Customized Solutions, Lack Of IT Expertise, Lack Of Qualified Service Provider)

3.3.2.8. Barriers - cloud adoption

3.3.3. Major Pain Points And ICT Adoption Opportunities

3.3.3.1. By Age Of Company

3.3.3.2. By Verticals

3.3.3.3. By Ownership Generation

3.3.3.4. By Revenue Size

3.3.3.5. By Employee Size

3.3.3.6. By Growth Of The Company

3.3.3.7. Pain Points (Compliance Activities, Incomplete Business Information On Own Firm, Insufficient Market Information, Customer Acquisition And Management, Attrition Of Staff)

3.4. Key Influencers

3.5. Market Share Analysis

3.6. Perceived benefits of ICT adoption

Chapter 4: Buying Behavior

4.1. Buying Decision Cycle

4.2. Preference of Accessing The Software

4.3. Purchase Trend

4.4. Preferred Mode Of Payment

4.5. Factors Affecting The Buying Decision

4.5.1. By Age of The Company

4.5.2. By Verticals

4.5.3. By Ownership Generation

4.5.4. By Revenue Size

4.5.5. By Employee Size

4.5.6. By Growth Rate

Chapter 5: SMB ICT : Market Size & Forecast by Sales

5.1. By Cloud

5.1.1. Overview

5.1.2. Market Size

5.2. By Verticals

5.2.1. Manufacturing

5.2.1.1. Overview

5.2.1.2. Case Study

5.2.2. Services

5.2.2.1. Overview

5.2.2.2. Case Study

5.2.3. Retail

5.2.3.1. Overview

5.2.3.2. Case Study

5.2.4. Education

5.2.4.1. Overview

5.2.4.2. Case Study

Chapter 6: SMB ICT : Potential Areas of ICT Deployment in SMBs