SINGAPORE--Small and midsize businesses (SMBs) in the island-state seem to be getting the IT message, according to a new study.
Speaking at a seminar here today, Daniel Lim, senior manager of industry and enterprise development at the Singapore Chinese Chamber of Commerce & Industry (SCCCI), said 44 percent of respondents in its latest survey spent 5 percent or more of their revenue on IT this year. Conducted annually in August by the SCCCI and Infocomm Development Authority of Singapore (IDA), the study on IT adoption surveyed 274 SMBs in the island-state.
Although the percentage of revenue spent on IT is about the same as previous years, the absolute dollars has increased. Lim said respondents posted an approximate 6 percent growth in annual turnover, and more than half of them rang in a million dollars or more in revenue. "In terms of revenue, they (SMBs) are growing in size and are spending a lot more in technology."
The survey also found that more SMBs were investing in IT security technologies. Compared to last year's 50 percent, 76 percent of this year's survey respondents said less than 2 percent of their IT budgets were spent on IT security. Lim said: "2007 recorded a high level of ICT security investment."
Lim noted that the increased spending reflect a greater awareness of security threats by SMBs, and said 70 percent of respondents indicated that when it came to security, they were "not leaving their business to chances".
In other findings, 97 percent indicated that IT is the way to go for their business, although 66 percent of them did not know what and which technology was beneficial to their company.
The managing director or CEO is also still the key decision maker on IT procurement matters. "The MD/CEO is the one who makes the final decision whether to make an IT purchase or not", Lim said.