Remote Infrastructure Management touches $4.3 Billion in FY2010

By siliconindia   |   Thursday, 16 September 2010, 00:24 IST
Printer Print Email Email
Remote Infrastructure Management touches $4.3 Billion in FY2010
Bangalore: Remote Infrastructure Management (RIM) services represent a major growth engine for the Indian IT services sector. It has had a significant impact on global IMS services, changing industry economics, customer expectations and contract features. This sector is estimated to have aggregated export revenues of $4.3 billion in FY2010 and employs 90,000 people. The drivers for RIM are expanding rapidly from cost, value to innovation and transformation. The Industry is focused on non-linearity and is building tools to enhance transformation for clients. New business and pricing models highlight the increasing complexity of roles offshored as well as improved vendor capabilities. At the same time, there has been growth in the Indian domestic market with large deals in the telecom and banking sector. It is estimated that by 2020 RIM can contribute more than a third of total IT services revenues for India. The global economic recession over the last few years impacted the average deal size and duration of IT contracts, and saw companies increasingly adopt complex pricing/business models, with a shift towards output based and risk and reward sharing models. The emergence of new and disruptive platforms like cloud computing, virtualization has created new opportunities for this sector. Emerging trends, new models for adoption and the roadmap for this industry were some of the questions debated and deliberated upon at NASSCOM's Infrastructure Management Services Summit 2010, held at Hotel ITC Gardenia, Bangalore today. The remote infrastructure management industry is driving non linear growth in the Indian IT industry, with a 5 times growth in exports and 4 times growth in employees. The service providers are enabling transformation of their client businesses by offering planning and consultation and network transformation. Commenting on the roadmap for the RIM industry and NASSCOM's initiatives to augment growth, Som Mittal, President, NASSCOM said, "The Remote infrastructure management services sector has been a major growth driver for the Indian IT services industry in the past few years, and has the potential to become the third largest revenue contributor to the IT services industry by 2020. But to sustain and achieve the potential growth, the industry needs to find effective measures to ensure 24/7 uptime of technical infrastructure, build a large pool of talent through investments in training, ensure compliance requirements of clients are met and security best practices are implemented on an ongoing basis. NASSCOM will support the industry through its RIM Forum." Over the past four years, the domestic IT services market has witnessed increased adoption of RIM services across different verticals like BFSI, Telecom, Real Estate, Utilities Auto, Consumer, Pharma and Government. All industry players, including Indian and MNC companies as well as captives are stepping up their managed services offerings to seize the opportunity presented by the sector. The top 5 players of the IT industry account for close to 50 percent share in the export revenues. The BFSI sector has the greatest traction to RIM services followed by other emerging verticals like telecom, retail, M&E and manufacturing. The growth and potential of the sector is also showcased by the Indian RIM vendors who are securing larger and more complex deals to provide RIM services, and are also engaging in M&A activities to expand their service capabilities inorganically. The industry is also taking initiatives like in house and third party training to improve technological, communications and soft skills of talent.

Votal AI: Redefining Workforce Efficiency Through Ethical AI