Indian SMBs lost $2.67 billion worth productivity: Microsoft study | SupportBiz

Managing Growth

Indian SMBs lost $2.67 billion worth productivity: Microsoft study

AMI-Partners revealed in a recent study that small businesses world-wide lose more than $24 billion worth productivity every year due to deployment of non-technical employees to supervise the companies’ IT solutions.

Such non-technical employees are referred to as ‘Involuntary IT Managers’ (IITMs).

The Involuntary IT Manager study takes a broad look at the prevalence of the IITM’s role in nine countries in North America, Latin America, the Middle East and Asia, focusing specifically on the adverse business productivity impact of IITMs in small business in the following five countries: Australia, Brazil, Chile, India and the United States.

In its small-business study, commissioned by Microsoft Corp, AMI-Partners found that, IITMs of small businesses in India lose 7.6 hours of productivity per week (around 300 hours per year), hence losing an overall $2.67 billion while spending $6.67 billion on IT/Telecom. This loss is a direct result of the IITMs taking time away from their primary business activities.

Surveying 538 IITMs across nationally representative samples of small businesses with 100 employees or less in the five countries, the AMI-Partners research study determined that approximately 3.8-million small businesses managed internal IT by IITMs.

India ranked highest in productivity loss in all five countries surveyed.

Andy Bose, founder, chairman and CEO, AMI-Partners said that, “As our research shows, relying on an Involuntary IT Manager can have an adverse impact on small businesses’ productivity, which can negatively affect revenue and translates into a very high opportunity cost. These companies can potentially leverage cloud services to alleviate the need for day-to-day in-house IT support with positive impact on their business productivity.”  

AMI-Partners found that, around 31 percent of IITMs surveyed are likely to shift more IT spending toward hosted or cloud solutions in the next 12 months; while 36 percent are interested in a productivity and collaboration suite.

According to the study, around 39 percent of the small businesses in India are interested in buying online productivity suites on a per-user, per-month basis.