Indian SMBs lead their global peers in technology spends: report

Growth of customer base and improvement in customer retention are some of India’s top drivers of technology adoption by SMBs.

“It is evident that linking technology investments and adoption with business strategies, as well as close collaboration with partners are crucial to deliver success for SMBs. Organizations, big or small, that are rooted in technology and committed to harnessing its full potential, will be able to stay ahead of the curve by becoming more agile, resilient, future-ready businesses,” said Samik Roy, Executive Director, Corporate Medium, and Small Business, Microsoft India, said,

The report is based on a study of over 3,000 businesses with under 300 employees across 10 markets worldwide, conducted by Analysys Mason.

Value for money

According to the report, less than a third of SMBs consider cost or value for money when assessing new technologies but half see it as a barrier to adoption.

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Illustration: Rahul Awasthi

“When SMBs evaluate new technologies for their businesses, they consider a range of different factors. Reliability and security are the most important – SMBs want their technology to work and to be secure, without having to worry about down time or cyberthreats affecting their business,” the report notes.

Efficiency and the quality of customer support are other important factors according to more than a third of SMBs.

Lifecycle of SMBs

The report further suggests SMBs operate at different stages of the business lifecycle, beginning as startups (11% of sample surveyed), and growing until they become mature businesses.

Startups are particularly invested in the potential of technology, being 1.6 times more likely than mature or declining SMBs to increase their technology budgets by more than 10%. Most SMBs are in either the growth or maturity phases. Almost all SMBs that are in operation for 20 or more years are in the maturity phase.

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Illustration: Rahul Awasthi

Another important facet the report brings forth is the lifecycle comparison of SMBs between India and China. According to the study, SMBs in India report the shortest average tenure, with only 38% of SMBs in operation for 10 or more years compared with 46% in other countries.

China, on the other hand, has the longest average tenure – with 53% being in operation for 10 or more years.