Local opportunity for IMS is lucrative
By outsourcing the management of routine tasks, one can focus on innovation, transformation, and the core business
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