Optimism returns, 75% mid-market enterprises expect operations to be back to pre-COVID levels in 2022: Report
While 83 per cent of the companies are now focused on digital resiliency initiatives to ensure business continuity, 57 per cent have already introduced automation in their operations.
- Dec 8, 2021,
- Updated Dec 8, 2021 9:28 PM IST
India's 6.3 crore medium, small and micro enterprises (MSMEs), which contribute over 60 per cent to the country's GDP, are back on track after being badly hit by the two waves of COVID-19. A joint study by SAP India and IDC stated that 75 per cent of mid-market enterprises are optimistic that their operations will return to pre-COVID levels in 2022.
According to the SAP India-IDC survey, which took into account 350 mid-market enterprises with a revenue of Rs 500-Rs 2,000 crore, a lot of these companies are adopting digitisation. As they embark on their journey to cloud, they are gearing up to adapt to business disruptions while competently capitalising on the changing business landscape.
While priorities vary from industry to industry, the main aim of MSMEs is to service customers better through touchless solutions, enable uninterrupted operations through automation, and provide a seamless user experience through adoption of cloud, the report said.
While 83 per cent of the companies are now focused on digital resiliency initiatives to ensure business continuity, 57 per cent have already introduced automation in their operations to improve efficiency across sectors like life sciences, IT, manufacturing, etc., it added.
Responding to a question from BusinessToday.in, Kulmeet Bawa, President and Managing Director, SAP, Indian Subcontinent, said that the company has seen a lot of traction from the MSME segment when it comes to digitisation adoption, which is reflected in the survey carried out between September-October, 2021.
"After a lot of volatility, which we saw in the mid-market companies during the pandemic, digitisation has been proven to be one important factor that will provide resilience and agility to such enterprises going forward," Bawa said.
Also Read: 'Outstanding soldier, true patriot': PM Modi leads nation in paying tributes to Gen Bipin Rawat
SAP currently has 10,000 mid-market companies in India as its clients, constituting 80 per cent of the German tech major's customer base from the country.
"Throughout our course of interaction with our clients, digital adoption has turned as a cornerstone which could turn these companies into multi-million dollar businesses," he said.
About 74 per cent of enterprises in India will increase or retain their spend on IT security, governance and risk management in 2022, as per the survey.
"For small and midsize businesses, 2021 represents the dawn of a golden age. Based on IDC research, it is very clear that smart business leaders are investing in cloud technologies that will help them meet their future goals. Doing so is not just what's right for the business but also for their employees, customers, community and our country's economy," said Subramanian Ananthapadmanabhan, Vice President, SAP Indian Subcontinent.
"It is heartening to witness Indian mid-market enterprises embrace the power of digital to be more agile, flexible and scalable enterprises of tomorrow," he added.
Sharath Srinivasamurthy, Research Director, Enterprise Solutions & ICT Practices, IDC India said that while the power of digital has been well embraced by the mid-market enterprises, the surveyed enterprises acknowledged agility, performance, and availability as the key drivers for adoption of cloud platforms.
"This rising trend of digital resiliency is prominent across industries such as manufacturing, healthcare and pharma, and professional services," he added.
Also Read: IPO-bound Delhivery acquires Transition Robotics Inc with an eye on drone technology
India's 6.3 crore medium, small and micro enterprises (MSMEs), which contribute over 60 per cent to the country's GDP, are back on track after being badly hit by the two waves of COVID-19. A joint study by SAP India and IDC stated that 75 per cent of mid-market enterprises are optimistic that their operations will return to pre-COVID levels in 2022.
According to the SAP India-IDC survey, which took into account 350 mid-market enterprises with a revenue of Rs 500-Rs 2,000 crore, a lot of these companies are adopting digitisation. As they embark on their journey to cloud, they are gearing up to adapt to business disruptions while competently capitalising on the changing business landscape.
While priorities vary from industry to industry, the main aim of MSMEs is to service customers better through touchless solutions, enable uninterrupted operations through automation, and provide a seamless user experience through adoption of cloud, the report said.
While 83 per cent of the companies are now focused on digital resiliency initiatives to ensure business continuity, 57 per cent have already introduced automation in their operations to improve efficiency across sectors like life sciences, IT, manufacturing, etc., it added.
Responding to a question from BusinessToday.in, Kulmeet Bawa, President and Managing Director, SAP, Indian Subcontinent, said that the company has seen a lot of traction from the MSME segment when it comes to digitisation adoption, which is reflected in the survey carried out between September-October, 2021.
"After a lot of volatility, which we saw in the mid-market companies during the pandemic, digitisation has been proven to be one important factor that will provide resilience and agility to such enterprises going forward," Bawa said.
Also Read: 'Outstanding soldier, true patriot': PM Modi leads nation in paying tributes to Gen Bipin Rawat
SAP currently has 10,000 mid-market companies in India as its clients, constituting 80 per cent of the German tech major's customer base from the country.
"Throughout our course of interaction with our clients, digital adoption has turned as a cornerstone which could turn these companies into multi-million dollar businesses," he said.
About 74 per cent of enterprises in India will increase or retain their spend on IT security, governance and risk management in 2022, as per the survey.
"For small and midsize businesses, 2021 represents the dawn of a golden age. Based on IDC research, it is very clear that smart business leaders are investing in cloud technologies that will help them meet their future goals. Doing so is not just what's right for the business but also for their employees, customers, community and our country's economy," said Subramanian Ananthapadmanabhan, Vice President, SAP Indian Subcontinent.
"It is heartening to witness Indian mid-market enterprises embrace the power of digital to be more agile, flexible and scalable enterprises of tomorrow," he added.
Sharath Srinivasamurthy, Research Director, Enterprise Solutions & ICT Practices, IDC India said that while the power of digital has been well embraced by the mid-market enterprises, the surveyed enterprises acknowledged agility, performance, and availability as the key drivers for adoption of cloud platforms.
"This rising trend of digital resiliency is prominent across industries such as manufacturing, healthcare and pharma, and professional services," he added.
Also Read: IPO-bound Delhivery acquires Transition Robotics Inc with an eye on drone technology