The Hindu Business Line : `Demand for outsourced technical support high'

THE National Association of Software Services Companies (Nasscom) has held that the worldwide demand for third-party technical support and help desk services is expected to reach $23 billion by 2008, displaying a combined compoundED annual growth rate (CAGR) of 9.6 per cent.

Citing latest data from the International Data Corporation (IDC), the Nasscom update stated that the worldwide market for outsourced technical support services will increase from $11.1 billion in 2003 to $16.9 billion in 2008, representing a CAGR of 8.8 per cent wherein the US will continue to dominate the demand for outsourced technical support and help desk services and will continue to outpace other regions of the world. Accenture, GE Capital, Daksh, MSource are among scores of industry players addressing this business space from India.

Technical support outsourcing involves transitioning the technical support function from a vendor or an original equipment manufacturer (OEM) to an external service provider. Elaborating the factors contributing to the growth of technical support services, the Nasscom report stated that outsourcing enables vendors and OEMs to concentrate on their core competencies, wherein they focus their strength on creating and developing innovative technologies that help them remain competitive. Services that are not considered core to the business would most likely be outsourced to give vendors and OEMs the opportunity to focus strategically on developing and creating products demanded by consumers of IT.

Furthermore, outsourcing allows technical support representatives to focus on value-added services and support a large proportion of calls that come into a support centre. Technical support in outsourced mode becomes a viable option when vendors are looking to reduce the high cost of support transactions. Independent software vendors (ISVs) and OEMs can be more agile in marketing their products by focusing on core competencies, thus responding more rapidly to changing market demands and increased competition.