Local opportunity for IMS is lucrative


Establishing an in-house IT team has its pros and cons, but these days the pros outweigh the cons.

So, do you want to have full-time staff on your roles tending to routine tasks like patch management, printing services, deploying and maintaining desktops; managing software updates, service desk, security auditing & enforcement, asset inventory, and such? Or would you instead have a lean team that spends much of its time thinking about, and supporting innovation? The rest of the time could be spent on significant tasks such as planning, monitoring SLAs, compliance and such. By outsourcing the management of routine tasks, one can focus on innovation, transformation, and the core business. That’s what the most successful businesses are doing today.

While companies in the West have for long outsourced the management of its infrastructure to countries like India, this trend is also catching on within India itself; companies based in India are increasingly outsourcing their infrastructure management. Here are a few examples.

Tata AIG outsourced 80 percent of its IT operations to Wipro’s Global Service Management Centre, enabling centralized remote management. This resulted in flexible cost structures by aligning costs of IT operations and management to business requirement.

Back in 2009, Max Healthcare chose Perot Systems (now part of Dell) to manage its various IT operations, including infrastructure management, data center hosting, applications portfolio management, project management office, clinical transformation, and implementation of Electronic Health Records (EHR). As you can see, the outsourced partner would essentially need to have strong domain expertise (healthcare business) to manage Max Healthcare’s operations to this extent.
And organizations like LG Electronics and Maruti Suzuki have accepted the fact that managing IT infrastructure should not be their core focus. LG Electronics outsources 90 percent of its IT operations. It has a Group company that manages the applications; its infrastructure management is outsourced to various partners. Even its in-house data center is managed by partners. So while the infrastructure is owned by these companies, the operations are managed by partners.

The market for Infrastructure Management Services (IMS) in India is poised for growth. According to a  recent survey by Forrester Research, the IT Managed Services market in India is expected to reach USD 3.8 billion by 2013, growing at a CAGR of 23 percent. And Nasscom has projected this opportunity to be USD 13 – 15 billion by 2013. So while India has proven global expertise in managing infrastructure, the local opportunity is also lucrative.

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The writer has been tracking consumer and enterprise technologies for the past 18 years.

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