SMEs sector lags in adoption of technology, says survey

A Nasscom-Nielsen study has found that only 64% of SMEs in India use technology

National Association of Software and Services Companies (Nasscom) has identified vast potential for technology companies to tap the small and medium enterprises (SMEs) sector, which lags in adoption of technology. The data reveals that although 90% of the SMEs surveyed were aware of the kind of software that can be installed on laptops or PCs, only 64% were actually using such technology. This presents a major opportunity for Indian technology and software providers for providing productivity enhancement software to SMEs.

Nasscom today presented the findings of a first-of-its-kind survey titled ‘NASSCOM AWSME India Survey 2012’ conducted in association with Nielsen India. The findings were presented at a session held on day one of the NASSCOM Product Conclave 2012 (7-8 November), here today.

The survey was conducted as part of a NASSCOM initiative to increase IT adoption in the SME market and promote the use of software for business efficiency. It highlighted that SMEs have a highly favourable disposition to usage of software, but are currently working with a very limited level of automation.

Som Mittal, President of Nasscom said: “We truly believe that small is the next big for the Indian IT industry and it is these SMEs that will be the growth drivers of the economy. Our intention of conducting the survey was to determine the software usage of Indian SMEs and then provide the relevant information to the stakeholders in the Indian software industry. We recognise the immense potential business software and technology can bring to these companies, and this makes them an attractive market to developers provided the right opportunities are leveraged. The survey validates this recognition.”

The survey was conducted between October 1, 2012 and October 21, 2012. Nasscom partnered with Nielsen India to carry out the survey across ten Indian cities. Over 1,000 individuals across Bangalore, Mumbai, Jaipur, Patna, Ludhiana, Delhi, Jaipur, Cochin, Kolkata and Pune participated in the survey, and these were all key decision makers within SMEs (either SME founders, CEOs, MDs, Partners or Owners).