35% Indian SMBs Spend Over 10% Revenue On Tech: Study

A new tech study has found that Small and Medium Businesses (SMBs) in India lead in spending on technology with around 35 per cent of them spending over 10 per cent of their revenue on technology, in comparison to global counterparts.

The study found the reason for this to be growth of customer base and improvement in customer retention are some of the top drivers of technology adoption by SMBs in India.

SMBs in India are also the most optimistic about future cloud adoption; 27 per cent of SMBs in India are all or mostly cloud based – a percentage that is expected to be global average in 2-3 years, revealed the Microsoft study.

It was discovered that 26 per cent of SMBs in India are early adopters of new technologies. They lead their counterparts in other countries when it comes to spending on technology with around 35 per cent of them spending over 10 per cent of their revenue on technology. Of these, 22 per cent SMBs in India are most likely to plan on an increase of over 10 per cent over the next year.

In a statement, Samik Roy, Executive Director, Corporate Medium, and Small Business, Microsoft India, said, “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.”

Indian SMBs also look to technology to help them to grow their customer base (39 per cent) and improve customer retention (38 per cent). These SMBs are the most likely to view competition intensity as a major obstacle (35 per cent).