Indian medium businesses spent $2.9 billion on IT
study by Access Markets International (AMI) Partners, Inc. shows that medium-sized
businesses in India spent over $2.9 billion on IT products and services in 2004.
This spending was driven by strong adoption of connectivity, computing and productivity
The previously under-saturated Medium Business (MB) market made major strides
in adopting new and advanced IT products and solutions encompassing VPNs, networked
storage, WLANs, intrusion detection, firewalls, and customer-focussed enterprise
applications. The overall spending on IT by the medium businesses grew by 15
percent to reach the latest figure.
MBs are looking to implement solutions that will enhance the intelligence and
scalability of their network in the most cost-effective way. Growing interest
in wireless LANs and the increasing need for VPNs have caused MBs to refocus
their technology-adoption decisions.
More than two-thirds of Indian MBs have listed VoIP adoption among their top
strategic focus areas for 2004, and 62 percent have expressed their willingness
to adopt WLAN.
In an attempt to reduce inventory and increase cost control, 70 percent of MBs
in India are emphasising the adoption of solutions for successful supply chain
management. This is also helping to improve overall business process efficiencies.
Due to increased competition, India MBs are focussing on building a long-term,
real-time relationship with customers. As a result, over two-thirds of medium
businesses expressed the need for enterprise software applications such as CRM
and ERP software.
In the area of information security, 58 percent of MBs in India have deployed
anti-virus solutions. 22 percent upgraded their solutions within the last two
years. 42 percent deployed some form of network-based firewall. India MBs have
spent over $55 million during the last 12 months on security-related products
and services such as anti-virus and anti-spam software, intrusion detection
programmes, firewalls and other IT security measures.