There is bound to be a direct correlation between IT as a
strategic department for an organization and the level of IT penetration and
spends on IT incurred by the growing enterprises. The average current IT spend
of an or-ganization having IT as a strategic department is Rs 53 lakh and that
of organizations not having IT as a strategic department is Rs 30 lakh. A
similar trend is also seen in case of planned spend on IT for 2006-07, ie Rs 60
lakh and Rs 31 lakh for organizations looking at IT as strategic or otherwise,
respectively. Therefore, it can be safely concluded that organizations having a
strategic IT department, spend more on IT-not surprisingly, therefore, IT
services/software spent the highest average amount of Rs 66 lakh amongst all
verticals in 2005-06, and at Rs 69 lakh, plan to do so again in 2006-07.
| Top
Pain Areas for Midsize Enterprises |
-
Vendors only talk
to the CIOs, but do not demonstrate
the functions enough
-
All IT decisions
are taken by the CEO who is a non-IT person, while the IT management
is done by the IT manager
-
Midsize companies
prefer bundled IT products as they come cheaper and are easier to
manage
-
Lack of technical
knowhow among employees
-
Vendors do not
provide tailormade solutions
|
The DQ-IDC Midsize Enterprise Survey findings also
dispelled some commonly prevalent myths-unlike larger enterprises, BFSI is not
really so hot a sector amongst growing enterprises. Not only does it have the
second lowest IT penetration amongst all verticals, at Rs 31 lakh, its average
IT spend can at best be called moderate. Maybe the smaller co-operative banks
and stock brokers who constitute the BFSI sector amongst growing enterprises are
yet to catch up with their big brothers on the IT front. Hopefully, with a
planned expenditure of Rs 39 lakh, BFSI will have the expected second highest
growth percentage amongst all verticals in 2006-07. Also, as expected, being
consistent with the current year, the IT services/software vertical will also be
spending highest on IT in the next year.
Pains and Gains
The levels of IT adoption across all verticals amongst growing enterprises
are fairly conservative; even IT as a strategic business enhancement tool scores
fairly low on the radars of most of them. The logical conclusion is that there
are several pain areas related to IT faced by most of these growing enterprises;
the DQ-IDC survey findings help in delineating these pain points. Incidentally,
all of these are restricted to problems in IT procurement, deterrents in IT
adoption and problems in IT integration.
It's time for vendors to take note that most growing
enterprises feel that they need a demonstration of the product function rather
than only listening about it. Also, they want tailor-made customized solutions
from vendors that should come as a bundled product, making it cheaper and easier
to manage. And as highlighted initially by the predicaments of Kurup, Parikh,
Rathi et al, in majority of emerging enterprises, IT management is done by the
IT manager, but all the decisions are taken by proprietor or people from non-IT
backgrounds. Also, there is a general lack of technical know-how among most
employees of growing enterprises.
| Top
Five Drivers |
-
IT is able to help
organizations improve employee productivity
-
IT can enable
organizations to serve customers better
-
Degree of IT usage
of individuals is increasing
-
Organizations have
adopted IT to move with the current trend
-
IT enables
companies to understand the business better and foresee the future
|
| Why
IT is Still Not A Hit |
|
Top 5 IT Procurement
Problems
-
IT is being pushed
as a utility
-
Vendors only talk
but do not demonstrate the functions enough
-
Many MNC vendors do
not understand the requirements of midsize organizations
-
Midsize companies
prefer bundle IT products as they come cheaperer and are easier to
manage
-
Vendors do not
provide prefered tailormade solutions
Top 5 Problems in IT
Integration
-
Midsize enterprises
face major challenges while deciding whether to go for automation or
not
-
High cost of
maintenance of IT hardware and software
-
Many, midsize
enterprises cannot evaluate the benefits of IT to take advantage of
them
-
Due to lack of
career prospects, it is difficult to retain IT people
-
Mid-size
enterprises are not aware of their exact IT requirements
Top 5 Deterrents in
IT Adoption
-
Most IT decisions
taken by CEO who is usually a know-how a non-IT person
-
Lack of technical
knowhow among employees.
-
Majority not aware
of government schemes which promote IT adoption.
-
IT can solve many
enterprise problems effectively but RoI is low/not clear
-
IT products are
expensive and difficult to implement.
|
Page(s) 1 2 3 4 5 6 7 8 9
| 
IT
Services/Software spent the spend the most on IT this year followed by
Manufacturing. This is in contrast to larger enterprises where BFSI is a
top spender of IT. Spend on hardware is nearly half of the total IT spend
across verticals, except BFSI, where it is a little lower.
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