It is important for India to fuel the growth of ‘the missing middle’, ie., about 64 million MSMEs that generate more than 111 million jobs, contribute 30% to GDP and account for almost 50% of the country’s total exports, through cloud-based automation and digital transformation, senior SAP officials observed at an event here.
As India accelerated its journey to become the world’s third largest economy, mid-size companies were a critical enabler of the country’s digital transformation that served everyone by generating employment and contributing to the GDP, said Kulmeet Bawa, president and MD, SAP Indian Subcontinent.
Cloud technology has been revolutionising ERP and mid-size companies today were looking for a reliable technology platform that would help them scale up and reach global markets, he said.
As per IDC, many mid-size businesses find themselves growing rapidly and need their technology to grow their business as they encounter the same issues related to global complexity as larger enterprise businesses.
In order to offer a quick growth to small and medium enterprises, SAP has introduced a new offering, Grow with SAP, which the company claimed, would simplify the automation processes and automate SMBs in just 4 to 6 weeks, compared with the traditional long and complex process of ERP implementation, said Mr. Bawa.
‘Grow with SAP’ would bring users, customers, partners and SAP experts closer to midmarket firms and they will also be able to access learning solutions offered by SAP, according to him.
Rajeev Singh, V-P & Business Head, Midmarket and Emerging Business, said there was a growing appetite among SMBs to accelerate their growth, to reach the global markets, to become competitive, to become more efficient and make their supply chain more agile.
“These are clearly the drivers. There is a rush to embrace automation to bring in more predictability and certainty into business, especially after the pandemic. Evidently, our SMB business grew 100% year-on-year in the last two years,” Mr. Singh added.
Some 80% of SAP customers in India are mid-size organisations and this customer segment is likely to continue to drive its growth in the country.
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