14 Aug 09 SMEs use Collaboration Tools to Stay Afloat

In recent times, a growing number of Indian SMEs are relying on collaboration tools as a cost-effective alternative to business travel. Market research firm International Data Corporation (IDC) has predicted that by the end of 2009-10, nearly 35% of small and mid-sized businesses in the country will be using some form of collaboration tools to run their businesses.

Analysts believe that although SMEs are cutting down on their overall IT expenditure, they have increased their spending on collaboration tools. They feel that these tools can make SMEs more productive, especially in the present economic scenario.

Enhancing productivity

'As SMEs are slowly realising the potential to have a robust communication infrastructure at their workplace, many of them have started deploying collaboration solutions such as Web conferencing and video conferencing,' says Prarthana Gupta, Director of Cache technologies, a Delhi-based mid-sized IT firm.

Ms Gupta adds that with the help of these tools, SMEs can make faster business decisions and also connect to their customers and partners more efficiently.

Experts feel that currently advanced collaboration tools such as telepresence and unified communications (UC), which were earlier restricted to larger enterprises only, are also gaining ground within the country's mid-market segment.

'The trend is more prominent among SMEs that are geographically dispersed as they have branch offices in the country as well as abroad. These tools allow them to strategically improve their agility and responsiveness to their client's demands,' says Sunil Kakkad, MD of Sai Infosystems, a mid-sized IT Services Company based in Bengaluru.

Tailored to meet SME needs

As SMEs work within a stringent IT budget and have specific requirements, IT vendors such as Cisco, Microsoft and Avaya are tapping this segment by building specific solutions for SMEs. They are customising the features as well as the pricing to suit the needs of this segment.

In order to attract the mid-market segment, these vendors are also focusing on service and support and also introducing exciting financing options.

Mr Kakkad believes that the past experiences on economic slowdown have revealed that companies that continue to invest in their communications infrastructure were able to cope with the crisis better. From that perspective, he feels that collaborative tools can serve as a premeditated survival strategy for the mid-market segment in the coming days.

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About the Author:

David Parks is a well known author and has written articles on Food Manufacturers, B2B Portal, Trade Shows Directory, suppliers, Manufactures and many other subjects.