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India's small and medium businesses (SMBs) are boosting investments on
Internet-related products and services, and are on track to reach $1.26 billion
this year, up a whopping 35 percent over last year, according to a recent study
by New York-based Access Markets International (AMI) Partners, Inc.
“The Internet is a multi-faceted tool,” said Kalyan Banga, Research Analyst,
AMI-Partners. “It is both a facilitator for simple tasks, as well as a key
differentiator among organizations that provides them with a competitive edge
in this digital era,” he added.
For medium businesses (MBs), the Internet has become a way of life and has
reached near-complete saturation. However, a significant growth opportunity
exists within small businesses (SBs) since only around 25 percent of them
currently possess an Internet connection.
A YoY usage analysis reveals a similar finding-that SBs are embracing the
Internet by leaps and bounds. The penetration of Internet-enabled SBs is
anticipated to rise by more than four percentage points this year.
“Technology penetration for most Internet-related technologies is
significantly higher for MBs, since almost all of them have stepped into the
second wave of technology adoption,” Banga said, adding, “However, there is
potential for a rise in penetration of Internet-related technologies for SBs and
even for MBs in case of e-commerce, Intranet, etc. For example, the strategic
technology adoption attitude of SMBs indicates that adding or enhancing
e-commerce capabilities is a priority of almost 28 percent of SMBs in the next
12 months.”
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Web 2.0
technologies-like social networking, blogs, podcasts, etc-are gradually
being adopted by Indian SMBs for information dissemination, marketing
and communication modes |
Improvement of Internet speed is a must, as mentioned by more than 50 percent
of SMBs. About 37 percent of respondents would like to opt for a total revamping
of their Internet-access infrastructure, such as replacing or upgrading their
Internet access routers. Broadband usage has taken a forward leap, thanks to the
efforts of ISPs who have significantly increased its affordability and
availability. A glimpse into ISPs reveals the dominance of BSNL/MTNL and Bharti,
which enjoy an SMB penetration of 44 and 33 percent, respectively. They are
followed at a distance by VSNL/Tata Teleservices and Reliance.
“Web 2.0 is one of the revolutionary Internet-related technologies that have
taken the world by storm. Indian SMBs have not been too far behind in following
this global trend. Web 2.0 technologies-like social networking, blogs, podcasts,
etc-are gradually being adopted by Indian SMBs for information dissemination,
marketing and communication modes, etc,” shared Banga.
For example, currently almost 10 percent of SMBs use social networking
services. An additional 33 percent are aware of this technology. Usage of blogs
and podcasts for advertising and promotional activities is higher among MBs.
SMBs are also heavily dependent on information sources like vendor websites
and search engines for gaining awareness about IT products and services. These
are used by about 45 percent of SMBs. The importance of online advertising also
displays an upward trend within SMB media-related activities. The two websites
that show maximum usage for online ads by SMBs are Google and Yahoo.
DQC News Bureau Page(s) 1
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