SME Spends on ICE To Grow Fastest In Tier-II Cities: Study | SupportBiz

Tech Mate

SME Spends on ICE To Grow Fastest In Tier-II Cities: Study

 
Raj Narayan's picture
SME Spends on ICE To Grow Fastest In Tier-II Cities: Study
Bangalore, January 28: Small and medium enterprises (SME) across India would be turning to the internet, communication and telecom (ICT) in order to enhance productivity and collaboration, growing at a CAGR of more than 15 per cent in the next five years, a research report said.

SMEs across tier-2 cities would be contributing a substantial portion of the all-India spending on ICT during the years ahead, says a report conducted by the New York-based Access Markets International (AMI) Partners. 

The report, quoted in the BizTech (Read the Full Story) says many companies would be seeking alternative smaller cities for their future, and earmark investments geared towards Tier II and III cities.

The study also suggests that SMEs in Tier-II cities exhibit a substantially higher growth-rate in terms of their IT spending compared to their compatriots in Tier-I cities; thus they are likely to be the future growth-engines of SME – in terms of IT spending.

It also says that the share of Tier-II city SMEs within the all-India SME IT spending is on the rise -the current 26 percent contribution of SMEs within these cities is likely to rise by approximately two-three percentage points within the next five years, as predicted by AMI analysis.

ICT vendors should therefore, definitely look outside the metros to tap into the second- and third-tier cities across the country for marketing their products and services.