You are here: Home » Companies » News
Business Standard

Smaller firms to spend more on IT: E&Y Study

Press Trust Of India  |  Mumbai 

Small companies, or with less than Rs 100-crore revenue, are likely to spend 32 per cent of their IT budget on business opportunity and 25 per cent on innovation in the current financial year, says an industry study.

According to a survey carried out by by Ernst & Young India for the CIO Klub, an association of chief information officers, larger would be spending less on IT his year considering the maturity of their operations. The third annual study titled, ‘The enterprise IT investment trends survey 2011,’ was released here last evening and is based on a survey of over 170 CIOs of with annual revenues of Rs 100 crore-over Rs 1,000 crore.

"The survey reflects the confidence in the India growth story and many companies are taking steps to further increase IT spends with a focus on providing business with innovative IT solutions, being more customer-centric and investing in technologies that aid in giving their business a competitive edge," said E&Y partner and IT advisory practices leader, Samiron Ghoshal, while releasing the report.

This year, firms would spend 35 per cent of their total IT budget for IT system maintenance, 28 percent on enabling business operations to capitalise on business opportunities, 23 percent on innovative technologies to compete better and 14 percent towards compliance, says the survey.

According to the survey, the five top objectives of higher IT spend this financial year business alignment, business continuity, information security, customer management and cost reduction.

For over 70 per cent of CIOs from companies with under Rs 500-crore revenues, business alignment is the top priority for the current financial year, this is only 50 percent for the CIOs from companies with over Rs 1,000-crore revenues. The second top priority is business continuity with 54 per cent identifying this. Information security comes third, with 47 per cent of confirming this, while 69 per cent of CIOs from companies with revenues over Rs 1,000 crore this is the key priority. This is very low at 26 percent among smaller firms.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, May 01 2011. 00:55 IST