Indian mid-size firms IT budget to rise: IBM

Indian mid-size firms' IT budget to rise: IBM

According to a study, even in today’s unsettled economy, midsize companies continue with technology investments in India

Thursday, July 23, 2009

NEW DELHI, INDIA: According to a global study released by IBM, even in tough economic conditions, over 50 per cent of Indian mid market business decision makers (including COOs, CFOs, CIOs etc.,) expects their IT budget to increase in 2009 versus last year.

The 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 recognize that a go-it-alone strategy may hinder their chances for success, and finding strategic IT partners who can collaborate with them to realize their vision is the key for success.
According to the study, even in today’s unsettled global economy, midsize 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, said a press release.
“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 added.

Some of the common barriers to successful IT implementation at growing organizations are an inability to implement and lack of required skills in-house.

Study findings indicate that many midsize firms work with IT providers and consultants to overcome these barriers.

In terms of selection criteria, 70 per cent 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 per cent 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, said the release.

Globally, the study shows that despite the current economic environment, a large percentage of organizations are rethinking, not reducing, when it comes to budget.

A total of 64 per cent report that their IT budgets remain the same or are actually increasing for the coming fiscal year, with nearly 40 per cent stating that their priorities have shifted.

Fewer than four in ten are actually reducing their IT budget.

Companies can survive, grow and thrive in this climate by using information, relationships and technology in new ways to create greater value and efficiencies, organizations can improve the way they manage and run their own business and gain a competitive advantage.

As a result, companies can achieve measurable and sustainable improvements through cost reductions, service-level increases and productivity gains – ultimately leading to stronger profit margins.

©CIOL Bureau