The managed services market in India is in a growth spree, and the future too looks great. In fact, IDC’s India Managed Services 2008-2012 Forecast and Analysis reported that the Indian domestic managed IT services market is expected to grow at a compound annual growth rate (CAGR) of 24.9%, to reach a US$2.78 billion industry in 2010. The Indian Managed Services market will become one of the fastest growing markets in the Asia/Pacific region.
Approach of the companies towards Managed Services
Managed services are most popular in the telecom sector. Lately, Banking and Insurance, Healthcare, Industrial Manufacturing, Infrastructure, HR, Payroll and Education sectors have also realized the importance of managed services and are using them quite aggressively these days.
Companies have realized that they can grow their business with the help of managed services. The MSPs manages the applications, infrastructure and many other mission mission-critical aspects of the companies; hence companies can avoid the humongous investments, the operational cost of maintaining a highly skilled operations team, and complexities of implementation and management of applications. In addition, companies can transfer any technology obsolescence risk and upgrade necessities, and all other operational work to the MSPs.
Managed Services Benefits & Challenges
The usage of managed services no doubt limits the risks related to economic and technological investments of the companies. As the businesses look for ways to cut cost but continue with the best of class services, the dependency on MSPs is bound to increase. The importance of MSPs will increase in this cost conscious market as they offer cost effective bundled solutions that are customized to the companies’ needs and requirements, and as they provide services to manage and monitor all the mission critical aspects required for the growth and survival of the businesses.
There are definite challenges and limiting factors that are hindering the growth of managed services in India. Traditionally, the Indian companies are bit hesitant about outsourcing their mission critical operations to others. So the main challenge for the MSPs would be convincing these hesitant customers that managed services would be secured, best of the class quality and would ensure a faster ROI. In addition, defining or creating service definitions, determining the appropriate pricing and migrating existing customers to the new managed services model are some challenges in the Indian market.
Conclusion
The Managed services market in India will definitely become very big. The MSPs have launched cost effective, highly flexible and global standard products that are increasingly becoming a must have in the cost conscious and highly competitive market scenario. As mentioned earlier, according to IDC the Indian domestic managed IT services market is expected to grow at a compound annual growth rate (CAGR) of 24.9%, to reach a US$2.78 billion industry in 2010.
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