India's Small Biz Sees IT Growth

India's SMBs will spend some $1.2 billion on Internet infrastructure this year.

Jennifer Bosavage, Editor In Chief, Solution Providers for Retail

July 3, 2006

1 Min Read
InformationWeek logo in a gray background | InformationWeek

Almost one-sixth of all IT spending this year will come from small and midsize businesses in India that are investing in their Internet infrastructure, a recent study by AMI-Partners notes. Those SMBs will spend some $1.2 billion (U.S.); total IT spending is forecast at $7.7 billion.

A government policy, "Broadband Policy 2004," was specifically created to assist in accelerating the growth of broadband services in India. It offers tax incentives to companies offering Internet services, broadband networks, and other telecom services, and it encourages multinational corporations to take advantage of the policy.

The study found that the biggest spenders on Internet technologies among small businesses are those in the retail sector; among midsize businesses are those in manufacturing. India's economy grew by slightly more than 8 percent in 2005. SMB spending on Internet access is forecasted to amount to nearly $830 million this year, a 24 percent increase from last year.

Almost all midsize businesses and more than half of PC-using small businesses already have access to the Internet, but much of that is through dial-up rather than broadband access; the study found there is a growing demand for faster connectivity. Because Internet access provides a cost-effective communication link between firms, Internet demand is expected to grow further as Indian SMBs expand and increase their locations/branches.

Read more about:

20062006

About the Author

Jennifer Bosavage

Editor In Chief, Solution Providers for Retail

Writing and editing from the IT metropolis that is Fairfield County, Conn., Jen is Editor In Chief of Solution Providers For Retail. In her role, she oversees all editorial operations of the site, including engaging VARs to share their expertise within the community. She has written for IT professionals for more than 20 years, with expertise in covering issues concerning solution providers, systems integrators, and resellers.

Jen most recently was Senior Editor at CRN. There, she was in charge of the publication's editorial research projects, including: Solution Provider 500, Fast Growth 100, Women of the Channel, and Emerging Vendors, among many others. She launched the online blog, "Channel Voices," and often wrote on career issues facing IT professionals in her blog, "One Year to a Better Career."

Jen began her tech journalism career at Electronic Buyer News, where she covered the purchasing beat. (That was so long ago that blue LEDs were big news.) Starting as copy editor, she worked her way up to Managing Editor before moving to VARBusiness. At VARBusiness, she was Executive Editor, leading a team of writers that won the prestigious Jesse Neal award for editorial excellence.

Jennifer has been married for 22 years and has two wonderful kids (even the teenager). To adults in her hometown, she is best known for her enormous Newfoundland dog; to high schoolers, for her taco nights.

Never Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.

You May Also Like


More Insights