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Tamil Nadu
“Small units grapple with skilled labour shortage”
Staff Reporter
CHENNAI: The shortage of skilled labour is a burning problem being faced by small and medium enterprises in the city, T. T. Ashok, Member of the Confederation of Indian Industries (CII) National Council, said on Friday.
In a panel discussion on ‘Making SME clusters IT-enabled for prosperity,’ he said that with the urban pool shrinking, companies were reaching out to rural areas. Plans were afoot to start a skill training institute in the city to close the gap. The paucity of skilled workers was a major reason for the inability of small and medium units to adopt information technology; after buying expensive software, they found it difficult to find people to maintain it.
Quoting statistics from CII reports, Mr. Ashok said that in a study of 400 small and medium units (with more than 500 employees), only 35 per cent invested in enterprise software solutions. In 40,000 units with less than 50 employees, hardly 2.5 per cent of the expenditure went for IT solutions. IT, he said, was still considered a costly option.
Though it was proven that technology definitely brought about improvement in business, he said, the small and medium units could not act with long-term benefits in mind, ignoring short-term costs, he said. Day-to-day priorities getting precedence over IT solutions. The challenge in implementing such enterprise-wide solutions acted as a deterrent.
Representatives of the small and medium units in the automobile industry shared their experience in implementing enterprise-wide software solutions. Confusion stemming from many software vendors competing with each other offering a wide variety of solutions often put these units in a quandary, they said.
Suresh Menon, Head, Storage and Solutions Business for Dell India, said the IT cost had come down, and customers need to look at the total costs, considering the long-term benefits of an IT-enabled organisation.
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