Lo­cal op­por­tu­nity for IMS is lu­cra­tive

By out­sourc­ing the man­age­ment of rou­tine tasks, one can fo­cus on in­no­va­tion, trans­for­ma­tion, and the core busi­ness

InformationWeek - - Edit -

Es­tab­lish­ing an in-house IT team has its pros and cons, but th­ese days the cons out­weigh the pros. So, do you want to have full-time staff tend­ing to rou­tine tasks like patch man­age­ment, print­ing ser­vices, de­ploy­ing and main­tain­ing desk­tops, manag­ing soft­ware up­dates, 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 most suc­cess­ful busi­nesses are do­ing to­day.

While com­pa­nies in the West have for long out­sourced in­fra­struc­ture man­age­ment 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).

Also, 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.

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. For this month’s cover story, our prin­ci­pal correspondent Ayush­man

Baruah ex­plores how the mar­ket for IMS is grow­ing in In­dia amid changes in the de­liv­ery model, na­ture and com­plex­i­ties of work, and du­ra­tion of the deal cy­cles. He ex­plores the impact of the U.S. slow­down and the Euro­zone cri­sis on the IMS in­dus­try. In her story on man­aged ser­vices, Vinita

Gupta ex­plores how or­ga­ni­za­tions are breaking up their IT in­fra­struc­ture man­age­ment en­gage­ments into spe­cific ar­eas and out­sourc­ing them to ven­dors that spe­cial­ize in han­dling a spe­cific func­tion.

I hope you find th­ese sto­ries (and the rest of the is­sue) in­sight­ful and in­for­ma­tive. And I also wel­come you to read our daily news up­dates, on­line fea­tures, and blogs at www.in­for­ma­tion­week.in

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