Mid-sized firms expect IT budgets to increase

Darlington Jose Hector, Bangalore
Financial Chronicle
According to a global study released by IBM, over 50 percent of Indian mid market business decision makers (including COOs, CFOs, CIOs etc) expect their IT budgets to increase in 2009 as compared to last year even in tough economic conditions.

A majority of Indian companies surveyed cited supply chain management (SCM), information management and security management as critical business priorities for improving business performance and efficiency. Most midsize companies also recognise that a do-it-alone strategy may hinder their chances of success, and finding strategic IT partners who can collaborate with them to realise their vision is the key for success.

According to the study, even in today’s unsettled global economy, mid-sized companies continue to innovate and grow through technology investments in India. This is especially true in growth markets where IT budgets have been left largely intact.

The study is based on a study of about 1,879 business and IT executives at companies with 100-1,000 employees across industries and in 17 countries including India, Australia, Benelux, Brazil, Canada, China, Germany, France, Italy, Japan, Malaysia, Mexico, Russia, UK, and the US.

“Midsize companies in India are constantly innovating while deploying resources to create sustainable business value. They are investing in the future – making changes and taking risks to survive, compete – and thrive,” said Ramesh Narasimhan, director, general business, IBM India/South Asia.

“In today’s globally integrated economy, it is necessary to enhance customer relationships and collaboration, and to create efficiencies across supply chains and core business operations,” he said.

Some of the common barriers to successful IT implementation at growing organisations are an inability to implement and the lack of required skills in-house. Study findings indicate that many mid-sized firms work with IT providers and consultants to overcome these barriers. In terms of selection criteria, 70 percent of those surveyed indicate that they prefer to partner with an IT company who has expertise in their business to help them work smarter, while 67 percent look for partners that can provide the highest quality IT infrastructure solutions.

Improving efficiency and productivity, improving customer focus and sharpening business agility emerged as the leading business challenges in the study.

The Indian marketplace has more than 35 million small and medium businesses, and many of the businesses are trying to expand their business beyond India.