Indian SMEs Lack ICT Strategies: NASSCOM, SMEs Have Lack Information Communication Technologies Strategies, Indian SMEs Don't Have ICT Strategies

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Namrata Kath Hazarika | 17 May, 2010
Indian small and medium-sized enterprises (SMEs) lack proper strategies to remove the impediments which constrain them to adopt Information Communication Technologies (ICT), the National Association of Software and Services Companies NASSCOM President Som Mittal told SME Times recently.

Mittal said, "Most SME firms do not have a formal IT budgeting process and hence don't plan for ICT investments. They also lack formal ICT decision making structures and in majority of the firms, the responsibility for ICT decision making is often with the firm's owner."

He mentioned that with many millions of Indian SMEs in the country struggling with low ICT penetration, it is imperative that suitable interventions are planned to remove the impediments which constrain SME firms to adopt ICT.

The NASSCOM chief added that rural penetration can help IT stalwarts to increase profit margins. "A key indicator for technology adoption is the penetration of PCs and internet subscribers in the country," he said.

He expects that the 3G and WiMax license auctions will have significant potential in providing broadband access in rural India at a low cost. Moreover, the use of IT in tele-medicine and remote diagnosis for rural areas is an area of emerging interest, he added.

The NASSCOM president also stated that SMEs can benefit a lot from the Small Industry Development Organization (SIDO) and National Small Industries Corporation Ltd.

While SIDO assists SMEs in human resource development through training and skill up-gradation and providing economic information services, NSIC focuses on the commercial aspects of SME operations: raw material procurement, product marketing, credit rating, acquisition of technologies, adoption of improved management practices, he pointed out.