Indian 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 capitalizing on the changing business landscape. While priorities varied from industry to industry, the aim is to service customers better through touchless solutions, enable uninterrupted operations through automation, and provide a seamless user experience through adoption of cloud. An IDC InfoBrief commissioned by SAP India indicated that 82% of midmarket enterprises are reducing their focus from on-premises business applications.
“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” said Kulmeet Bawa, President, and Managing Director, SAP Indian Subcontinent “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.” he added.
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 findings also indicated that 68% of midmarket enterprises either intend to increase (5-10%) or retain their IT spend in 2022.
The infobrief indicated the following key findings:
75% of Midmarket Enterprises Will Return Operations to Pre-Pandemic Levels by End of 2021
- 83% of enterprises are focusing on resiliency objectives like business continuity
- 58% of enterprises have an ERP system providing full visibility of operations across different departments
- IT & ITeS, Retail and Engineering, Construction and Operations leading this adoption
- 58% if enterprises have introduced scorecards, visualization and simulations to analyse their financial performance to take critical business decisions
- 50% of enterprises are taking an integrated approach towards employee experience & engagement post the pandemic as compared to only 36% enterprises in pre-pandemic.
- IT & ITeS and Retail are the top industries focusing on an integrated approach
- ~40% 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.
Brand and Reputation Resiliency
- 74% of enterprises in India will increase or retain their spend on IT Security, Governance & Risk Management in 2022.
“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,” added Subramanian Ananthapadmanabhan, Vice President, SAP Indian Subcontinent. “It is heartening to witness Indian midmarket enterprises embrace the power of digital, to be more agile, flexible and scalable enterprises of tomorrow.”
This study assessed over 350 Indian midmarket enterprises with an annual revenue of INR 500 Cr to INR 2000 Cr. The respondent demographics consisted of 55% CXOs and 45% directors with responses across all dimensions of digital resiliency such as Operational, Workforce and Customer, Brand and Reputation, Leadership and Organization, and financial resiliency. The industries covered by the infobrief were Chemicals, Industrial Manufacturing, Life Sciences, Professional Services, Retail & Consumer Packaged Goods, and Engineering, Construction & Operations.
Commenting on the study, Sharath Srinivasamurthy, Research Director, Enterprise Solutions & ICT Practices, IDC India said, “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. This rising trend of digital resiliency is prominent across industries such as manufacturing, healthcare and pharma, and professional services.”