Mumbai, Jan 5: The small and medium enterprises (SMEs) in the Indian IT space are confident of achieving 65 per cent growth in the next two years, surpassing the 43 per cent growth rate posted for last two years, according to a study from Dun&Bradstreet (D&B).
The study titled 'Emerging IT SMEs of India 2007' provides an insight into 244 IT companies, which are involved in providing software and hardware products and services. All the companies profiled are in the below Rs 100 million turnover bracket during the previous fiscal year. The study observed that close to 53 per cent of the companies faced moderate problems in acquiring funding and 43 per cent felt the proposed withdrawal of tax sops for the IT, ITeS and the BPO industry by 2009 will be significant in terms of deciding the future industry growth.
Of the 437 locations, from where these companies operate, Bangalore and Mumbai emerged as the top locations for operations. Nearly 18 per cent and 17.6 per cent of the profiled companies operate from these two cities, respectively.
The overseas presence of 28 per cent of the sample audience encapsulated the changing trend in the SME's perspective, which are now willing to cross borders to pursue growth. Companies with Rs 10-50 million turnover accounted for almost 50 per cent of the profiled companies.