IT Helps Fuel Revenue & Job Growth in SMEs in India
New BCG research finds that if more SMEs adopted the latest IT tools in India, they could boost revenues by $56 billion and create more than 1.1 million jobs in the country
Tech-savvy small and medium-sized enterprises (SMEs) created more new jobs and drove more revenue gains over the past three years than SMEs using little technology, according to new research commissioned by Microsoft Corp. and independently conducted by The Boston Consulting Group (BCG), a global management consulting firm and a leading adviser on business strategy. The BCG report, Ahead of the Curve: Lessons on Technology and Growth from Small Business Leaders, found if more SMEs in India adopted the latest IT tools there is potential for SME revenue to grow by $56 billion and create 1.1 million new jobs. "SMEs are a critical growth engine for jobs and economies today," said Karan Bajwa, Managing Director of Microsoft India. "There is tremendous opportunity for economic growth. Our objective is to help more SMEs transition to, and benefit from, modern IT. For customers, it means providing product training and helping SMEs understand the full range of available devices and services, but it also means community and industry investments such as skills training," Bajwa added. Speaking at the press conference, Mr. Vibhor Jain, Director, Glowmac Lighting Pvt. Ltd. said, "Technology as played a significant role in helping us expand our business. We have seen enhanced efficiencies that have brought visibility into key performance parameters. This has helped us get better control over our operations, reach newer markets and grow our business." BCG's research found that over the past three years, IT-enabled SMEs, which BCG refers to as "technology leaders", grew revenues 15 percentage points faster and created twice as many jobs as SMEs that use less technology. The research also revealed that across nearly all product categories, these fast-growing SMEs use more Microsoft solutions than any other products, and that SMEs view Microsoft as the top partner for new and future technology needs. In fact, when asked what technologies survey respondents could not live without, they chose Microsoft Office as the top productivity application over all others. Moreover, SMEs that adopted Microsoft Cloud services grew faster than SMEs that do not use any Microsoft products. These companies also reported greatly improved employee mobility, scalability and agility. "The BCG research revealed that Microsoft products and services are the No. 1 choice of these technology leaders," said Meetul Patel, Microsoft's General Manager of Small and Mid-Market Solutions and Partners organization in India. "Microsoft and its broad ecosystem of partners in India have helped SMEs grow, compete and become more profitable through the effective use of office productivity tools, cloud-based services and mobile technology. We are committed to helping businesses across the country access, use and benefit from the latest advances in information technology" Patel added. "We and our partners in India have designed several programmes to help SMEs transform their business by the effective use of office productivity tools, cloud-based services and mobile technology," Patel added. The BCG report argued that the latest wave of technological advancement, such as cloud services, brings potential for the most far-reaching innovation and business growth ever, creating an opportunity for more SMEs to achieve the growth rates of technology leaders by leveraging technology to fuel productivity and growth. The research revealed that high-performing SMEs stayed ahead of mainstream IT adoption, riding new waves of advancement to improve productivity, connect with new customers and markets, particularly outside their own region or country, and compete with much larger players. These companies employ the full range of available tools - from productivity software to Internet connectivity and cloud-based services.