SMB IT Market in BRIC 2015-2019
About SMB IT Spending in BRIC
BRIC countries contributed approximately 38% of the global SMB IT spending in 2014. Technavio predicts that, in BRIC, SMB IT spending will cross $186 billion by 2019 from $111 billion in 2015. Over the past five years, IT spending priorities of SMBs have been redefined because of the growing awareness of the impact of IT on businesses, both top line and bottom line. Therefore, there has been growing focus on server and storage virtualization technologies, mobility, Big data/analytics, business intelligence, cloud computing, next-generation workspace, and collaboration technologies from SMBs. However, some of the challenges faced by SMBs are IT budget, lack of leadership initiative in implementing IT changes, lack of IT knowledge to determine the ROI of IT investment in the business, and lack of skilled workforce.
Technavio's analysts forecast the SMB IT market in BRIC to grow at a CAGR of 10.89% over the period 2014-2019.
Covered in this Report
The report covers the present scenario and the growth prospects of the SMB IT market in BRIC for the period 2015-2019. The market can be categorized into three segments: hardware, software and services.Technavio's report, SMB IT Market in BRIC 2015-2019, has been prepared based on an in-depth market analysis with inputs from industry experts. It covers the market landscape and its growth prospects in the coming years. The report includes a discussion of the key vendors operating in this market.Key Regions
Technavio Announces the Publication of its Research Report – SMB IT Market in BRIC 2015-2019
Technavio recognizes the following companies as the key players in the SMB IT Market in BRIC: Accenture, Cognizant, Digital China Holdings, HP, Huawei, IBM and Lenovo
Other Prominent Vendors in the market are: Acer, AsiaInfo Linkage, AsusTek, Atos Origin, Capgemini, China National Software, Cisco Systems, Dell, HCL Infosystems, IBS, Infosys, Microsoft, National Computer, Neusoft Group, Oracle, SAP, TCS, Wipro Infotech and Xerox
Commenting on the report, an analyst from Technavio’s team said: “The majority of the revenue of IT providers comes from customers who have invested heavily in IT infrastructure and who are moving into newer technologies, such as mobility and analytics. However, nearly 25% of their revenue comes from first time IT adopters who invest in basic IT solutions. Upper SMBs are ready to invest in an upgrade of their existing IT hardware and software and are willing to invest in packaged software offerings. The upper segment remains the target for global IT providers because of higher margins and no hassle in post implementation payments. However, this scenario is changing, and these IT providers are realigning their strategies to tap into the SMB segment. They are also refocusing their efforts on Tier I and II cities by adopting newer marketing strategies.”
According to the report, BRIC believes that SMBs play a vital role in economic and social development because these have a higher growth and employment potential than large enterprises and government sectors. Therefore, below are some of the measures adopted by BRIC to ensure their SMB sector grows domestically and remains competitive, globally. The Brazilian Government not only provides technical assistance to SMBs but also buys from them to help in their growth. It has established a non-profit organization called Sebrae with the mission of promoting the sustainable and competitive development of small businesses. Its role is to foster entrepreneurship, provide guidance to help in the growth of small businesses, increase IT adoption, and generate more employment, thereby helping to develop the Brazilian economy.
Further, the report states that challenges faced by SMBs such as underdeveloped sales channels because of high geographical dispersion are making it difficult to reach out to customers, thereby causing a cascading effect on IT providers that serve this segment.
Accenture, Cognizant, Digital China Holdings, HP, Huawei, IBM, Lenovo, Acer, AsiaInfo Linkage, AsusTek, Atos Origin, Capgemini, China National Software, Cisco Systems, Dell, HCL Infosystems, IBS, Infosys, Microsoft, National Computer, Neusoft Group, Oracle, SAP, TCS, Wipro Infotech, Xerox
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