NASSCOM addresses monetizing opportunities for Indian SMBs

 The latest report “Indian SMB Market” - Monetizing emerging opportunities prepared in association with Frost & Sullivan, has been submitted by the National Association Software and Services Companies (NASSCOM). The report was unveiled in the presence of Madav Lal, Secretary MSME, Government of India; R. Chandrashekhar, President, NASSCOM, and Ms Neelam Dhawan, Managing Director, Hewlett-Packard and Chairperson, NASSCOM Domestic Council who discussed the findings of the report with the attendees.

The elements of research, devised jointly by NASSCOM and Frost & Sullivan, reveal that the SMB market is estimated to witness a Y-o-Y growth of 15% (CAGR), which will propel the IT spending in the sector to cross US$18.5 billion (Rs.1,00,000 crore) by FY18. The report also highlighted that the Indian SMBs are rapidly innovating and are adopting technology solutions to enhance competitiveness in the dynamic global and domestic business environment. The IT firms are continuously developing their strategic roadmap for the SMB market with products designed specifically for this segment, having dedicated business units with the relevant business metrics and focussed go-to-market strategies.

R. Chandrashekhar, President, NASSCOM, stated that “Small and Medium Businesses across all verticals play a critical role in the resurgence of the Indian economy and contribution to GDP and employment generation. SMBs face significant challenges in the volatile business environment and global competition. Technology is an enabler that can pave the way for being competitive, drive growth and integrate with global supply chains. Our industry members are developing innovative vertical focussed solutions leveraging the SMAC stack, to support SMB customers in India. NASSCOM will partner with the government and industry associations to ensure successful adoption of IT.”

Today, India’s SMB segment is recognized as one of the critical pillars of the Indian economy. The report highlights that SMBs employ about 40% of India’s workforce and contributes more than 17% to the national GDP. Despite its size, the SMB segment is facing many challenges like fragmentation, unorganized growth and scalability issues, among others.