Forty per cent businesses have realised productivity benefits through the usage of information technology while more Indian companies are steadily increasing the use of IT for Return on Investment, according to a study by National Association of Software and Service Companies.

"Forty per cent businesses have realised productivity and benefits and 36 per cent of companies surveyed had well defined and documented proof on RoI, the survey said on the basis of its assessment of 10 key business verticals' IT usage.

The survey revealed that about 40 per cent of the businesses admitted considerable increase in productivity that has been defined and documented while 58 per cent said there had been a positive impact on productivity but difficult to quantify.

Sixty six per cent of the organisations have a well documented IT policy, 18 per cent were in the process of documenting it and four per cent were in the process of implementing it.

IT spending as a percentage of the annual turnover of user organisations was found to be less than one per cent. However, for almost 30 per cent of the organisations, there is more than incremental increase in the spending with an increase in their annual turnover, it said.

84 per cent of the organisations that were surveyed stated that IT planning was an annual exercise.

"With rapid deregulation of sectors such as utilities, energy, power telecom and banking in India, the demand for IT products and services is increasing," Kiran Karnik, president, Nasscom said.