Dun & Bradstreet, on Wednesday released its study on “Emerging IT SMEs of India 2007.”
Bangalore and Mumbai emerged as the top locations for operations, with 18 per cent and 17.6 per cent of the profiled companies operating from these two cities respectively.

Overseas presence by 28 per cent of the sample encapsulates the changing trend in the SMEs’ perspective, which are now willing to cross borders to pursue growth. Companies in the revenue bracket of Rs 10 – 50 million accounted for almost 50 per cent of the profiled companies.

According to Dun & Bradstreet India COO Kaushal Sampat “the study reveals that IT SMEs are confident of a 65 per cent growth in the next two years surpassing their growth rate of 43 per cent in the last two years. Despite the strong growth prospects, the IT SME sector is witnessing several challenges such as the acute shortage of skilled manpower, which is mostly faced by IT SMEs located at Tier - II and III cities.”

  Key insights  of the study are:
• 32 per cent of companies offer IT services as well as software products
• More than half of the companies, close to 53 per cent, face moderate problems in acquiring funding
• 36 per cent of companies are now looking at Tier - II cities such as Nagpur, Surat, Guwhati and Chandigarh to develop centres.