Spe­cial­iza­tion drives IT man­aged ser­vices mar­ket

Spe­cific niche ar­eas, such as print­ing, se­cu­rity and stor­age are emerg­ing as strong growth driv­ers for the man­aged ser­vices mar­ket in In­dia

InformationWeek - - Contents - By Vinita Gupta

While the over­all IT Man­aged Ser­vices mar­ket con­tin­ues to grow rapidly in In­dia — this space is wit­ness­ing the emer­gence of spe­cific niche ar­eas within the IT man­aged ser­vices mar­ket. An­a­lysts are ob­serv­ing a trend where or­ga­ni­za­tions are breaking up their IT in­fra­struc­ture man­age­ment en­gage­ments into spe­cific ar­eas and out­sourc­ing them to ven­dors that spe­cial­ize in han­dling a spe­cific func­tion. Hot niche ar­eas that are emerg­ing in the man­aged IT ser­vices space in­clude Man­aged Print Ser­vices, Man­aged Se­cu­rity Ser­vices and Man­aged Stor­age Ser­vices.


Per­haps, the most es­tab­lished niche is the Man­aged Print Ser­vices (MPS) space, which is dom­i­nated by ven­dors such as HP, Canon and Xerox. Re­ports by in­de­pen­dent re­search and an­a­lyst firms con­firm this de­mand. A re­port by For­rester Re­search es­ti­mates that the MPS mar­ket in Asia-Pa­cific (ex­clud­ing Ja­pan) will grow to USD 1 bil­lion by 2012. The In­dian mar­ket is ex­pected to be the fastest grow­ing mar­ket in the re­gion, with a CAGR of 22.6 per­cent. Sim­i­larly, a re­port by the Pho­tizo Group es­ti­mates that the man­aged print ser­vices mar­ket in In­dia is grow­ing at CAGR of 51 per­cent, and

is ex­pected to be worth ` 1,530 crore in 2012.

While CIOs have tra­di­tion­ally looked at squeez­ing costs from their IT in­fra­struc­ture, print­ing is one func­tion that has tra­di­tion­ally been over­looked. Spe­cial­ist play­ers in this space are evan­ge­liz­ing clients on the huge cost ef­fi­cien­cies that can be gained by avail­ing Man­aged Print Ser­vices. For ex­am­ple, pre- and post­anal­y­sis of some of HP’s man­aged print ser­vices cus­tomers’ imag­ing and print­ing op­er­a­tions re­veal en­ergy sav­ings rang­ing be­tween 30 per­cent and 80 per­cent, and re­duc­tions in pa­per con­sump­tion to the tune of mil­lions of pages.

“Over the years, or­ga­ni­za­tions have re­al­ized that del­e­gat­ing their print­ing and imag­ing port­fo­lio will help them save 15-30 per­cent in cost,” opines Shekhar Agrawal, Direc­tor - Man­aged En­ter­prise So­lu­tions, HP IPG.

A sim­i­lar opinion is shared by Vishal Awal, Ex­ec­u­tive Direc­tor - Ser­vices, Xerox South Asia. He re­veals that en­ter­prises spend up to 2 per­cent of their rev­enues on run­ning print­ers, copiers, scan­ners, fax ma­chines and other de­vices that are of­ten en­ergy in­ef­fi­cient. “An of­fice print op­ti­miza­tion strat­egy can re­duce this ex­pen­di­ture by as much as 15-25 per­cent while also de­creas­ing en­ergy con­sumed and waste gen­er­ated. Ad­di­tion­ally, em­ployee pro­duc­tiv­ity can be en­hanced due to ef­fi­cient man­age­ment of print op­er­a­tions, and via in­no­va­tive fea­tures like mo­bile and cloud-based print­ing.”

In In­dia, there are sev­eral ex­am­ples of firms that have shown that MPS de­liv­ers proven ROI. For ex­am­ple, by out­sourc­ing its print­ing needs and man­age­ment to Canon, mid-sized firm, MindTree, achieved more than 50 per­cent de­crease in pa­per con­sump­tion and 25 per­cent re­duc­tion in print­ing costs, as well as sav­ings of over USD 62,000. Sim­i­larly, KPO firm, Eval­ue­serve has been able to save ap­prox­i­mately 40 per­cent of pa­per us­age due to forced du­plex print­ing en­abled by MPS. The firm has also man­aged to re­duce the num­ber of print­ers from 54 to 25, as the new ar­range­ment pro­vides the firm se­cure print­ing, which in turn al­lows the firm to share print­ers be­tween mul­ti­ple groups. The new print­ers con­sume low en­ergy as com­pared to old print­ers, lead­ing to 70 per­cent sav­ings on elec­tric­ity costs.


In an al­ways on en­vi­ron­ment,

Or­ga­ni­za­tions have re­al­ized that del­e­gat­ing their print­ing and imag­ing port­fo­lio will help them save 15-30 per­cent in cost


Direc­tor - Man­aged En­ter­prise So­lu­tions, HP IPG

en­ter­prises can­not af­ford to have even a sin­gle mo­ment of down­time. In addition, as stor­age vol­umes are grow­ing at an ex­po­nen­tial pace, en­ter­prises have grad­u­ally started ex­plor­ing op­tions such as stor­age-asa-ser­vice and DR-as-a-ser­vice.

“Due to tremen­dous amount of growth in data, it’s pre­dicted that data will grow to 2.3 bil­lion petabytes by 2020. To­day, we see that more and more en­ter­prises in In­dia are look­ing at out­sourc­ing their stor­age and backup,” states Nikhil Madan, Direc­tor - North, EMC, In­dia. To tap on this op­por­tu­nity, EMC has part­nered with ven­dor Tulip Tele­com to of­fer man­aged on- de­mand stor­age ser­vices and Back­u­pas-a-Ser­vice (BaaS).

Sim­i­larly, IBM is also bet­ting big on cloud­based DR and BCP ser­vices. As a grow­ing num­ber of In­dian en­ter­prises are vir­tu­al­iz­ing their in­fra­struc­ture, they are look­ing at op­tions to backup their vir­tual ma­chines. To ad­dress this mar­ket, IBM is pro­vid­ing Smart­Cloud Vir­tu­al­ized Server Re­cov­ery ser­vice. It is pro­vid­ing cus­tomers with a range of op­tions, such as al­ways avail­able vir­tual ma­chine, vir­tual ma­chine avail­able only for use dur­ing dis­as­ter and test, and vir­tual ma­chine for im­port­ing server im­ages and backup data from stor­age me­dia. Should dis­as­ter strike, users can di­rectly ac­cess their data on the cloud via a por­tal, elim­i­nat­ing the need for travel to the off­site lo­ca­tion.

DR-as-a-ser­vice is a promis­ing niche area that is show­ing good po­ten­tial for adop­tion. For or­ga­ni­za­tions that are strug­gling to mon­i­tor and main­tain the Re­cov­ery Point Ob­jec­tive (RPO) and Re­cov­ery Time Ob­jec­tive (RTO), as per in­dus­try re­quire­ments, DR-as-a-ser­vice can prove an at­trac­tive op­tion. If an or­ga­ni­za­tion out­sources th­ese ser­vices to a ser­vice provider, then as per the SLA, the ven­dor has to make sure that it meets the RTO, RPO and other busi­ness ob­jec­tives. As most of the or­ga­ni­za­tions do not have the

right IT in­fra­struc­ture and ex­per­tise to main­tain and meet the RTO and RPO re­quire­ments, this is fu­el­ing the need for out­sourc­ing the re­quire­ments to spe­cial­ist ven­dors.


This is an­other mar­ket that is on the verge of ex­plod­ing. With the grow­ing com­plex­ity of at­tacks, en­ter­prises are forced to reg­u­larly up­grade their se­cu­rity in­fra­struc­ture. This is fu­el­ing In­dian en­ter­prises to tie up with spe­cial­ist providers to bet­ter pro­tect their in­fra­struc­ture and en­sure com­pli­ance.

A case in point is iYogi, a firm which pro­vides sub­scrip­tion-based tech sup­port for PCs, con­nected de­vices and pe­riph­er­als. The firm part­nered with Ver­i­zon for en­han pro­tec­tion of its net­work and onl pay­ment sys­tem. To­day, Ver­i­zon is in­volved in pro­vid­ing iYogi with a range of man­aged se­cu­rity ser­vic such as com­pli­ance to PCI DSS and ISO/IEC 27002, vul­ner­a­bil­ity as­sess­ment and in­ves­tiga­tive re­sponse ser­vices. Sim­i­larly, Religare has part­nered with Tata Com­mu­ni­ca­tions to bet­ter pro­tec its crit­i­cal net­work in­fra­struc­ture busi­ness ap­pli­ca­tions.


The huge pop­u­lar­ity of cloud-bas tech­nolo­gies is also en­cour­ag­ing ser­vice providers to come up with new de­liv­ery mod­els. “With cloud com­put­ing, the man­aged ser­vice of­fer­ing is mov­ing from a phys­i­cal to a vir­tua en­vi­ron­ment. The or­ga­ni­za­tion has the op­tion of out­sourc­ing the whole in­fra­struc­ture or a part of the IT en­vi­ron­ment to op­ti­mize th e

RISHIKESH KAMAT, Sr. Prod­uct Man­ager In­fra Man­age­ment & Man­aged Se­cu­rity Ser­vices, Net­magic So­lu­tions Due to tremen­dous amount of growth in data, more and more en­ter­prises in In­dia are look­ing at out­sourc­ing their stor­age and backup


Direc­tor - North, EMC, In­dia

IT spends,” says A S Pillai, Se­nior Vice Pres­i­dent – IT Ser­vices, Sify Tech­nolo­gies. For ex­am­ple, a bank can out­source spe­cific IT work­loads like In­ter­net bank­ing, as­set man­age­ment, mu­tual fund prod­ucts and other small projects and not the core bank­ing

Spe­cial­ized man­aged ser­vice is com­plex and hence there is a need to de­fine the ex­act SLAs


While the cloud is well-suited for de­liv­er­ing a com­mod­ity ser­vice to a large num­ber of cus­tomers, de­liv­er­ing a spe­cial­ized ser­vice is com­plex. “Spe­cial­ized man­aged ser­vice is com­plex and hence there is a need to de­fine the ex­act scope, roles and pon­si­bil­i­ties (SLAs),” says Rishikesh mat, Se­nior Prod­uct Man­ager nfras­truc­ture Man­age­ment Man­aged Se­cu­rity Ser­vices, Net­magic So­lu­tions.

Or­ga­ni­za­tions like In­fosys have de­vel­oped spe­cial­ized of­fer­ings to tar­get the ris­ing op­por­tu­nity in pro­vid­ing spe­cial­ized ser­vices. “We have de­vel­oped IT as­sets, which en­able our cus­tomers o max­i­mize their re­turns on eir IT in­fra­struc­ture, as well as hance per­for­mance and im­prove mpli­ance,” states Chan­drashekhar Kakal, Se­nior Vice Pres­i­dent, Global Head of Busi­ness IT Ser­vices, Mem­ber, Ex­ec­u­tive Coun­cil, In­fosys. The com­pany has hnol­ogy plat­forms in the mar­ket ch as In­fosys IT As­set Per­for­mance nage­ment, Pro­cureEdge and en­tEdge, which are hosted, er­ated and man­aged in the cloud d are of­fered to or­ga­ni­za­tions on an tcome-based pric­ing model. Driven by in­creas­ing pres­sure on the com­pa­nies to control cost in the wake of global eco­nomic slow­down and mam­moth pres­ence of the SMB mar­ket in In­dia, an­a­lysts be­lieve that the IT man­aged ser­vices mar­ket will ex­pe­ri­ence huge growth in the do­mes­tic mar­ket.

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