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Cloud Call Center Community Featured Article

TMCNet: AMI Research: India Banking and Financial SMBs Set to Spend $1.24B on IT Infrastructure in 2009

[October 28, 2009]

AMI Research: India Banking and Financial SMBs Set to Spend $1.24B on IT Infrastructure in 2009

Oct 28, 2009 (Close-Up Media via COMTEX) -- Access Markets International noted in its latest study that SMBs in India (small and medium businesses or companies with up to 999 employees) in the banking/ financial sector are on track to spend $1.24B in 2009 on their overall IT infrastructure, up by about 3.5 percent over 2008.


The group further noted that significant growth can be observed in the field of broadband, intranet, website hosting, and website development.

"Spending on external Internet service providers for hosting their websites, third-party consulting, and contracts for maintenance of websites is on the rise among Indian banking/ financial SMBs," said Alankar Joshi, Research Analyst at AMI Partners. A key technology trend among banking/ financial SMBs is the higher adoption of web hosting and development; this includes expenditures on intranet, website development, and website maintenance. SBs (small businesses or companies with up to 100 employees) have shown a spending increase of 13.4 percent over the last year on web hosting and development, while MBs have shown a year-over-year rise of 8.7 percent in expenses. Another noticeable trend is the increased outlay on storage services; this includes all storage-related services provided by third-party service providers or channel partners and includes installing & maintaining storage systems, offsite backup and archiving. This has risen by 8.5 percent over 2008.

"Some of the drivers that contribute to the growth of IT adoption among Indian banking/ financial SMBs include increasing customer expectations, compliance and regulatory policies, competitive scenario and increasing security threats," says Alankar Joshi. It is now compulsory even for small businesses to maintain electronic records of their transactions so as to comply with the regulatory requirements. However, some of the roadblocks for the adoption of technologies within banking/ finance SMBs are higher cost of implementation and concerns about return on investment (ROI).

Independent software vendors (ISVs) are playing a role in developing customized solutions specific to banking/ financial sub verticals. Most of the SMBs are opting for these customized packages to save cost, streamline their operations and to maintain better connections with their customers. Most of the bigger IT vendors are associated with these ISVs and a business transaction acts as a win-win situation for both. For ISVs, such tie-ups ensure financial backing and reach to a greater client base.

Report Information: http://www.ami-partners.com.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

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