Indian Tech: Indian SMEs Lead Global Peers in Tech Spending: Report

Small and medium-sized businesses (SMBs) in India lead their global counterparts in spending on technology, with around 35% spending more than 10% of their revenue on technology according to the Microsoft SMB Voice and Attitudes to Technology 2022 Study.

Growth of customer base and improvement in customer retention are some of the main drivers of technology adoption by SMEs in India.

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

The report is based on a study of more than 3,000 companies with fewer than 300 employees in 10 markets around the world, conducted by Analysys Mason.

Value for money

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

“When SMBs are evaluating new technology for their business, they consider a variety of different factors. Reliability and security are top of mind: SMBs want their technology to work and be secure, without having to worry about downtime or errors. cyberthreats that affect your business,” the report states.

The efficiency and quality of customer service are other important factors according to more than a third of SMEs.

SME life cycle

The report further suggests that SMEs operate at different stages of the business life cycle, starting as start-ups (11% of the sample surveyed) and growing into mature businesses.

Startups are especially invested in the potential of technology, with mature and declining SMEs 1.6 times more likely to increase their technology budgets by more than 10%. Most SMEs are in the growth or maturity phases. Almost all SMEs that have been in operation for 20 years or more are in the maturity phase.

Another important facet presented by the report is the SME life cycle comparison between India and China. According to the study, SMEs in India report the shortest average tenure, with only 38% of SMEs in operation for 10 years or more compared to 46% in other countries.

China, on the other hand, has the longest average tenure: 53% are in business for 10 years or more.

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