Indian Managed IT Services to grow at 24.9%
By CXOtoday Staff
Mumbai, Sep 02, 2008 1730 hrs IST

The total India managed IT services market in 2007 was estimated to be $1,170 million with managed network services accounting for the biggest share of the pie followed by managed desktop services. This represented 20 per cent of the total India domestic IT services market, which crossed $5 billion revenues in 2007.

Seepij Gupta, assistant manager, Software and Services Research, IDC India said, "The traditional IT outsourcing model is under siege and "Risk and Reward" deals are now becoming popular." "Today, service providers are launching low-cost, highly flexible service delivery platforms that leverage 'commoditized technology' to provide more 'productized services' to customers."

Initially the market witnessed large user enterprises adopting infrastructure management services (IMS), as they looked for competent partners to manage their increasingly complex IT infrastructure, the firm said in a statement.

As enterprises of all sizes, across verticals reap the benefits of outsourcing their IT infrastructure, the main driver for managed services can be summed up in one sentence - it is all about "do it for me" versus the burden of do it yourself, the statement said.

According to Praveen Sengar, senior manager, Software and Services Research, IDC India, "While engaging in outsourcing contracts, management should have a clear vision on long-term organizational goals along with activities that can be outsourced.