ASPs to drive IT in SMEs: Nasscom

A Nasscom report says that though the SMEs have not made any significant investments in IT so far, over the medium term they are likely to increase their IT investment extensively to improve productivity and cost competitiveness.

This is also likely to be driven by the availability of IT infrastructure and applications through the ASPs where in several SMEs share the cost of IT services or acquire IT application on lease.

The report also says that the manufacturing industry in India is on the growth path and currently the sector contributes 16 per cent to the nation's GDP. India has the potential to become the global manufacturing hub as it has the required skill-set, good sense of technology and advanced software expertise.

Other key trends in IT usage by the manufacturing sector

A number of large companies in manufacturing sector -automobiles, auto ancillary, pharmaceuticals, steel sectors. etc have made significant investments in IT.

The key to a successful IT strategy is a robust Knowledge Management infrastructure coupled with Business Intelligence and management philosophy, Enterprise wide application integrating across functions.

A healthy business process management approach, integration of supply chain partners across core activities.