The Hindu Business Line : NetMagic targets US, UK markets

The company plans to push its remote infrastructure management and remote network operations centre (NOC) services in the overseas market. The global remote network monitoring and management services market is estimated at $80 billion (Rs 36,000 crore).

Backed by venture capitalists like Mr B.V. Jagadeesh and Mr K. B. Chandrashekar, NetMagic started operations in 1998 and received a funding of $4 million (Rs 18 crore) in 2000.

``We became a net profitable company from 2003 - we are now in a healthy cash flow situation. Our future plans, which include the extension our presence and service offerings, are not capital intensive,'' Mr Sharad Sanghi, Managing Director and CEO, NetMagic Solutions Pvt Ltd, told Business Line.

``The service levels offered for remote NOC includes a 24/7 monitoring staff base. This, along with the labour arbitrage, makes the US and UK good markets to target,'' said Mr Sanghi.

According to Mr Karan Kirpalani, Marketing Manager, NetMagic, the labour arbitrage reduces costs tenfold.While the cost of hiring an Indian level-one engineer is Rs 15,000 to Rs 25,000 per month, the US counterpart would be paid $ 25,000 to $45,000 (Rs 11 lakh - Rs 20 lakh) annually. A level-2 engineer would earn Rs 30,000 to Rs 40,000 per month whereas the US engineer earns $50,000 to $80,000 (Rs 22 lakh - Rs 36 lakh) annually.

The company will sell its remote infrastructure management and remote NOC services to the mid-sized enterprises and service providers in these regions. According to Mr Sanghi, the average value of a contract from a small/medium enterprise is approximately $100,000 (Rs 45 lakh) a year.

domestic market.