E-readiness for SMEs is basically the level of preparedness of SMEs for using Information Communication Technologies in the way they do the business i.e. the way the products are produced, promoted and provided. New ICT enabled models are being created and new channels have become available for marketing, communication and interaction with customers. The ways SMEs can become part of the global value chain are also changing. The main thrust of e-readiness is to be able to create,distribute and facilitate sharing of knowledge quickly and thoroughly. This calls for concentrated efforts to bring people to a common platform, designed to create a stable and supportive environment for easier adoption of ICT.

A necessary requirement for adoption of ICTs by SMEs, at least in the initial stage is availability of supportive infrastructure in term of connectivity, hardware, software, technical manpower and availability some kind of common platform for e-learning. In Tirupur knitwear cluster though exhibits a high level of basic ICT awareness and social capital: there are clear signs tat the potential of e-business has not yet been fully utilized. There is a considerable gap between large companies and their small supply firms in terms of e-business activity. There is a need to bridge this digital divide is sensitize and support information technology related activities of the micro and small units in Tirupur knitwear cluster. Setting up an E-readiness centre is a small step in the direction.

E-readiness Centre is aimed to be an impartial, institutionalized common platform for all the cluster actorsto share and gain information specifically in the field of ICT and to help them in planning, adapting and managing better work practices. E-readiness centre will help SMEs in improving their competitiveness and be part of the global value chain. Thus, the ERC is seen as an easily accessible one stop shop for all ICT related needs of the knitwear firms in Tirupur cluster.

To mobilize and facilitate adoption of information communication technologies among SMEs in Tirupur cluster by fostering an ICT friendly environment for improved process integration and market research.

It has been observed the ICTs adoption by small and medium enterprises is quite low due to inherent reasons e.g. lack of financial resources, not availability of trained manpower and above all failure to understand the potential benefits of ICT usage. The main aim of the centre will be to provide accessibility to the SMEs to such ICT services that can directly benefit them in business growth by improving their systems or processes, by reducing production costs, cutting down delivery times, enhancing total quality management practices, establishing standardized processing and enabling good customer service. This would be possible through enhanced technical understanding & information skills, good managerial practices and links with other firms & institutions. The e-readiness center has been conceived to make such a transition easy and to provide continued support to the cluster for such information and linkages.

The major gaps inhibiting ICT usage in the cluster that need to be addressed through the ERC are: