Gartner on Ramco
G00238770
SMB Growth and SaaS-Based ERP Will Fuel ERP Adoption in India
Published: 24 January 2013 Analyst(s): Sunil Padmanabh, Asheesh Raina
The small and midsize business sector in India is in a rapid growth phase, and is expected to grow with the same momentum during the next three years. Globalization and software-as-a-service-based solutions targeted at SMBs will drive ERP adoption in this sector.
Impacts
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Small and midsize businesses (SMBs) in India faced with global competition are being compelled to streamline their operations. The growth of software as a service (SaaS)-based ERP will provide alternative deployment choices for Indian SMBs. ERP vendors are aggressively focusing on Indian SMBs with industry flavors and targeted ERP solutions. SMBs are penetrating Tier 2 Indian cities, raising expectations that they will progressively adopt ERP.
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Recommendations
Indian SMBs:
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Consider how ERP can improve functional integration and drive business process improvements. Assess the readiness for deploying ERP, and clarify the changes required to your business. If your organization is located in a Tier 2 city, evaluate the IT infrastructure availability prior to embarking on cloud ERP. Evaluate the credentials of your ERP vendor's partner ecosystem that has a focus on the SMB segment.
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Analysis
"SMB" Defined
Gartner's SMB market definition varies regionally because of variations in currency and earned revenue. Table 1 indicates how SMBs in India compare to the rest of the Asia/Pacific region and the world.
Table 1. SMB Definitions Around the World Asia/Pacific and Japan Small Business Segment Number of employees
EMEA
Latin America
North America
1 to 99 Less than $10 million
1 to 99 Less than $15 million
1 to 99 Less than $10 million
1 to 99 Less than $50 million
Revenue range
Midsize Business Segment Number of employees, low-end midmarket Number of employees, upperend midmarket
SMB Growth and SaaS-Based ERP Will Fuel ERP Adoption in India
Published: 24 January 2013 Analyst(s): Sunil Padmanabh, Asheesh Raina
The small and midsize business sector in India is in a rapid growth phase, and is expected to grow with the same momentum during the next three years. Globalization and software-as-a-service-based solutions targeted at SMBs will drive ERP adoption in this sector.
Impacts
■
Small and midsize businesses (SMBs) in India faced with global competition are being compelled to streamline their operations. The growth of software as a service (SaaS)-based ERP will provide alternative deployment choices for Indian SMBs. ERP vendors are aggressively focusing on Indian SMBs with industry flavors and targeted ERP solutions. SMBs are penetrating Tier 2 Indian cities, raising expectations that they will progressively adopt ERP.
■
■
■
Recommendations
Indian SMBs:
■
Consider how ERP can improve functional integration and drive business process improvements. Assess the readiness for deploying ERP, and clarify the changes required to your business. If your organization is located in a Tier 2 city, evaluate the IT infrastructure availability prior to embarking on cloud ERP. Evaluate the credentials of your ERP vendor's partner ecosystem that has a focus on the SMB segment.
■ ■
■
Analysis
"SMB" Defined
Gartner's SMB market definition varies regionally because of variations in currency and earned revenue. Table 1 indicates how SMBs in India compare to the rest of the Asia/Pacific region and the world.
Table 1. SMB Definitions Around the World Asia/Pacific and Japan Small Business Segment Number of employees
EMEA
Latin America
North America
1 to 99 Less than $10 million
1 to 99 Less than $15 million
1 to 99 Less than $10 million
1 to 99 Less than $50 million
Revenue range
Midsize Business Segment Number of employees, low-end midmarket Number of employees, upperend midmarket