During the COVID19 pandemic organisations have increasingly adapted to the digital way of working. They have accelerated their journey of digital transformation, while this must have come across as a challenge but organisations are now opting to shift most of their workloads on cloud.
An IDC InfoBrief commissioned by SAP India indicated that 82 per cent of mid market enterprises are reducing their focus from on-premises business applications.
India Midmarket enterprises have truly embraced the power of digital, to be more agile, flexible, and scalable. 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, the report added.
“While digital transformation can accelerate growth, it is innovative business models, cloud transformations and reconnecting with customers which will determine long-term and sustainable success. The Indian midmarket segment is poised to play a significant role in the country’s quest to become a $5tn economy. SAP is committed to co-create, empower and enable mid-market enterprises in their digital-first business and growth journey,” said Kulmeet Bawa, President, and Managing Director, SAP Indian Subcontinent.
The rising trend of digital resiliency among the midmarket enterprises showcased an increasing optimism to invest more in cloud, cybersecurity, analytics, and business intelligence. The orchestration capabilities to interoperate across different cloud environments is considered as one of the top drivers for cloud-related investments in 2022. The survey findings also indicated that 68 per cent of midmarket enterprises either intend to increase (5-10 per cent) or retain their IT spend in 2022, the report added.
The study assessed over 350 Indian mid-market enterprises with an annual revenue of Rs 500 crore to Rs 2,000 crore. The respondent demographics consisted of 55 per cent CXOs and 45 per cent directors with responses across all dimensions of digital resiliency such as operational, workforce and customer, brand and reputation, leadership and organisation, and financial resiliency.
The industries covered by the report were chemicals, industrial manufacturing, life sciences, professional services, retail and Consumer Packaged Goods, and engineering, construction and operations.
“While the power of digital has been well embraced by the midmarket enterprises; the surveyed enterprises acknowledged agility, performance, and availability as the key drivers for adoption of cloud platforms,” IDC India Research Director Enterprise Solutions and ICT Practices Sharath Srinivasamurthy said.
This rising trend of digital resiliency is prominent across industries such as manufacturing, healthcare and pharma, and professional services, he added.
“For small and midsize businesses, 2021 represent 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. It is heartening to witness Indian midmarket enterprises embrace the power of digital, to be more agile, flexible and scalable enterprises of tomorrow,” said Subramanian Ananthapadmanabhan, Vice President, SAP Indian Subcontinent.
The survey indicated the following key findings:
- 75 per cent of Midmarket Enterprises Will Return Operations to Pre-Pandemic Levels by End of 2021
- 83 per cent of enterprises are focusing on resiliency objectives like business continuity
- 58 per cent of enterprises have an ERP system providing full visibility of operations across different departments, IT and ITeS, Retail and Engineering, Construction and Operations leading this adoption
- 58 per cent if enterprises have introduced scorecards, visualisation and simulations to analyse their financial performance to take critical business decisions
- 50 per cent of enterprises are taking an integrated approach towards employee experience & engagement post the pandemic as compared to only 36 per cent enterprises in pre-pandemic. IT & ITeS and Retail are the top industries focusing on an integrated approach
- 40 per cent of enterprises are adopting an end-to-end approach for managing the customer journey across all departments based on customer behaviour. Profound adoption by IT & ITeS, Life Sciences & Pharma, Retail and Engineering, construction & operations.
- 74 per cent of enterprises in India will increase or retain their spend on IT Security, Governance & Risk Management in 2022.