Most mid-size cos plan to hike IT spend: Study

Most mid-size cos plan to hike IT spend: Study
The Hindu Business Line, July 25, 2009, Page 4

Our Bureau, Bangalore

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,) expect their IT budget to increase in 2009 compared with last year.

According to the survey: “The majority of Indian companies surveyed cited supply chain management (SCM), information management and security management as critical business priorities for improving performance and efficiency.

Most mid-size 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 realise their vision is the key for success.”

“Even in today’s unsettled global economy, mid-size 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.”

This is based on a study of 1,879 business and IT executives at companies with 100 to 1,000 employees across industries and in 17 countries including India, Australia, Brazil, Canada, China, France, Italy, Malaysia, Mexico, Russia, UK, and US.

“Mid-size companies in India are investing in the future – making changes and taking risks to survive, compete – and thrive,” said Mr Ramesh Narasimhan, Director, General Business, IBM India/South Asia.

Skilled in-house

The study said, “Some of the common barriers to successful IT implementation at growing organisations are an inability to implement and lack of required skills in-house. Study findings indicate that many mid-size firms work with IT providers and consultants to overcome these barriers.”

About 70 per cent said that they prefer to partner with an IT company that 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.