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The report also reveals a significant growth in the field of broadband, intranet, website hosting and website development. According to Alankar Joshi, the research analyst from AMI Partners, spending on external Internet service providers for hosting their websites, third-party consulting, and contracts for maintenance of websites is on the rise among Indian banking and financial SMBs.
Small businesses (or companies with up to 100 employees) have shown an increase in IT spends on web hosting and development of 13.4% over the last year, while medium-sized businesses have shown a year-on-year rise of 8.7% in expenses. Spending on storage services has also risen by 8.5%; this includes all storage-related services provided by third-party service providers or channel partners. It also includes installing and maintaining storage systems, offsite backups and archival.
"Some of the major drivers are customer expectations, compliance, regulatory policies, the competitive scenario, and increasing security threats," says Joshi. Challenges for the adoption of advanced technologies within this space are higher implementation costs and concerns about return on investment.
As per the report, banking and finance SMBs are opting for these customized packages to save cost, streamline their complex critical operations and maintain better connections with their customers. Hence, independent software vendors play a major role in developing customized solutions for this vertical.