A recent study by New York-based Access Markets International (AMI) Partners Inc reveals that Indian SMBs (small and medium business or companies with up to 999 employees) will spend US$30 million on accounting software in 2009, showing a 5% growth over 2008. Out of the total spends, small businesses (SBs or companies with 1-99 employees) invest more on accounting software, contributing nearly 85% of the share.
According to Priti Verma, the research associate for research and consultancy at AMI-Partners, Bangalore, "On demand software or software as a service (SaaS) is a growing trend in the accounting software, market and Indian SMBs are choosing this option to weather the economic storm. More Indian medium businesses (MB, companies with 100-999 employees) are adopting SaaS than their SB counterparts."
Verma explains that features like rapid implementation, low capital expenditure, and web support are making these SaaS-based software solutions popular within the MBs. Vendors also provide ongoing maintenance supply services to the companies deploying such SaaS-based accounting solutions. Some of the additional functionalities provided by such accounting software are supply chain management, logistics, financial management, radio frequency identification, and inventory management. Organizations are now implementing web-based accounting software to integrate workflow and consolidate tasks.
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