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Info-Tech - Interview
‘Demand for managed IT services set to grow’


Recent reports reveal that almost 40 per cent of Indian businesses outsource their infrastructure managed services.




Mr Dataram, President, e4e India

L.N. Revathy

Coimbatore, July 5 The spend on managed IT services/outsourcing services is expected to see some growth across the spectrum of hardware, software and services in 2009, say industry observers.

And IDC’s optimistic forecast of the IT industry in the Asia-Pacific region seems to suggest that this growth would primarily be driven by the strong demand for managed services.

“As business complexity increases, it becomes imperative for enterprises to outsource IT infrastructure and applications to a service provider with domain expertise. This would help improve efficiency, cut cost and bring about a drastic change across the enterprise,” Mr Narasingarao Dataram, President, e4e India, said.

Studies show that the Indian IT infrastructure managed services market would touch $10 billion by 2011 from $3 billion at present.

Excerpts from an interview:

What are the emerging trends in the managed services space?

Managed services around infrastructure have become a key component for organisations to ensure sustained growth and remain competitive. In fact, this has taken a more strategic in-line business role rather than a mere support role.

In India, both large enterprises and SMEs are weighing the benefits of outsourcing such services, which is one of the best things to happen in this downturn.

What is the demand for managed services in India?

In the current economic environment, enterprises here are shifting their focus on their core deliverables, while trimming operational costs. By outsourcing IT management , companies can become more competitive on a global scale. Recent reports reveal that almost 40 per cent of Indian businesses outsource their infrastructure managed service.

The key sectors that stand to benefit from managed services?

Some of the high spenders are telecom, BFSI, BPO, manufacturing, pharma and retail verticals. Telecom, BFSI and BPO account for 70 per cent of the managed services market.

We hope to see other verticals such as healthcare and education adopting such services in the coming years.

Why should managed services be custom-made and business-specific?

Typically, if you stack IT managed services, there would be many layers common to all verticals, but will differ invariably in the systems and applications layer for different verticals. These are areas where domain knowledge of that vertical and specific process knowledge could bring major advantage.

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