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Indian SMBs lead in technology spending: Microsoft study

Small Indian businesses are leading the global race to adopt cloud technology and become customer friendly. They are bringing in technical experts to participate in digital inclusion, protect their data, and retain workforce.

Indian SMBs lead in technology spending: Microsoft study

Thursday October 06, 2022 , 2 min Read

Indian small and medium businesses (SMBs) lead in spending on technology, according to Microsoft SMB Voice and Attitudes to Technology Study 2022, driven by their motivation to grow their consumer base and improve customer retention.


The study revealed that 35% companies spend 10% of their revenue on technology in comparison to global counterparts. Of these, 22% SMBs in India are most likely to plan an increase of over 10% over the next year.


The study, prepared by Analysys Mason, examines the role of technology in shaping the landscape of small businesses and their attitudes, preferences, and adoption of technology. It was observed that Indian SMBs are the most optimistic about cloud adoption in future; 27% of SMBs in India are all or mostly cloud based.


Global competition is a greater challenge for India because small businesses are more concerned about cloud migration than their counterparts in high-income markets. Customer loyalty, cash flow, cloud migration and regulations are also major hurdles.


Seeing the post-pandemic impact, SMBs are more willing to invest in managed IT services and cloud solutions. They are actively seeking partners with advisory and guidance capabilities. Managed service providers and cloud service providers are ideally placed to support SMBs' technology challenges by supplementing their internal IT teams with specialist skills. 


About 45% of SMBs want to improve environmental sustainability across the markets, said the study. They also recognise social goals as primary business objectives; these include sustainable business practices, diversity and inclusion. Small companies want to increase employee satisfaction to retain more workforce and positively impact the community.  


Samik Roy, Executive Director, Corporate Medium, and Small Business, Microsoft India, said, “It is evident that linking technology investments and adoption with business strategies as well as close collaboration with partners are crucial to deliver success for SMBs. Organisations that are rooted in technology and committed to harnessing its full potential will be able to stay ahead of the curve by becoming more agile, resilient, future-ready businesses.”


SMBs are the economy’s cornerstone and vital job creators, contributing approximately 30% to India’s GDP. They employ 114 million people in the country.


Edited by Swetha Kannan