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22% Indian SBs may Buy PCs for First Time in 2009
By CXOtoday Staff
Mumbai, Jan 05, 2009 1810 hrs IST
Nearly 22 percent of SBs (small businesses, or companies with up to 99 employees) in India have plans to invest in small business computers for the first time in the next 12 months. This is likely to add over half a million non-PC SBs (SBs with no computer adoption) to the existing PC SB universe within India. This will also boost spending in other IT categories such as software, services, security, etc, according to a study by Access Markets International (AMI) Partners, Inc.
In the current economic downturn, businesses are looking at cutting costs, and as a result PC-owning SBs are extending the life-cycle of existing PCs, said Dipendra Mitra, analyst at AMI-Partners. The non-PC owning businesses hold the key to growth in India. Even if a fraction of the 2.5 million non-PC owning businesses buy a small PC, it will provide a considerable boost to the Indian IT industry.
SMBs are a vital part of the Indian economy and a major contributor to India s GDP. Yet, only a little more than a third of all SBs actually own and use a PC. One key reason for this is the lack of awareness of the benefits of PCs among SBs. A recent AMI survey found that more than 55 percent of the SBs view PCs as having no relevance to their line of business, and nearly a third have not even considered buying a small business computer.
"However, this attitude is changing as non-PC SBs realize the benefits of computerization, he said. About a quarter of these non-PC SBs say PCs will make their business look more professional. And one fifth of these non-PC SBs say PCs will increase the productivity of their employees, and the resultant business automation will boost efficiency. A considerable proportion of these businesses are likely to be first-time PC buyers.
When asked about their channel preference for future PC purchase, 90 percent of non-PC SBs in India said they preferred to buy from the local computer store. Retail computer stores offer many advantages, such as convenient options of buying over the counter, selecting from multiple brands and models and a chance to weigh the pros and cons of each PC model or brand.
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