IT managed services market in India to hit $US3.8 billion in 2013

Finding from Springboard Research

The IT managed services market in India is growing at a compound annual growth rate (CAGR) of 22.8 per cent, according to IT market research specialist Springboard Research's newly released report 'Indian Managed IT Services Market'."

The market is expected to reach $US3.8 billion in 2013 from $US1.6 billion in 2009, and this growth is higher than the growth rate of the overall IT services market. The report says Wipro Infotech has the highest market share, and HCL Infosystems leads in user satisfaction.

Change in traditional model

This year will see the dominance of managed infrastructure services but things will change in the future. By 2013, the highest growth will be recorded by managed application services that are predicted to grow at a CAGR of 26.2 per cent.

About 66 per cent of CIOs surveyed by Springboard said they intend to adopt and engage with a managed services model rather than strategic outsourcing. These professionals think it will be more convenient to use managed services and perceive that by doing so, they will have access to the best of breed services without losing control of IT.

Sudip Saha, senior analyst, IT services, at Springboard Research, said Indians have used managed IT services in varied forms for more than 20 years. A lot has changed during this time and the market has gradually transformed from body shopping contracts or facility management services to a process-oriented delivery model.

"After the initial delivery of onsite managed services, the market started to transform to a hybrid of offsite services delivery either through Remote Infrastructure Management (RIM) or a combination of RIM services and onsite delivery," said Saha.

High rate of adoption

Initially, managed services were mostly adopted by large enterprises but now more small and medium businesses (SMBs) are using them because of competitive pressures and operational concerns.

Corporate giants have skilled internal IT teams that can support day-to-day operations but the SMBs don't have this luxury and they prefer to adopt the managed services model in a phased manner.

Today, SMBs are very keen on using managed network services, workplace management services and managed server services, according to the report. Banking, financial services and insurance (BFSI) organisations are the largest contributors to the managed IT services market and they are followed by the manufacturing and government verticals.

"The managed services providers need to focus on service excellence and offer 'productised' services to retain customers. They must expand their local delivery capabilities by having knowledgeable, customer-facing partners and distributors," advised Phil Hassey, vice president, IT services, at Springboard. "The users, however, need to gauge the compatibility of managed services with their internal business processes and maintain a balance between onsite and offsite services."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Managed Servicesindiaindian outsourcing

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Anuradha Shukla

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?