IMS, next target for Indian IT

By SiliconIndia   |   Tuesday, 30 December 2008, 09:21 Hrs
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New Delhi: Infrastructure Management Services (IMS) is becoming the next lucrative vertical for Indian IT despite the economic slowdown. The remote IMS business out of India currently stands at $200-300 million, but has a market potential of $55 billion globally, according to Nasscom.

Datacenter outsourcing, network management, IT security outsourcing, telecom and application monitoring and management fall under the horizon of IMS. In India, all IT firms have hopped on to the IMS bandwagon as it gives an edge to firms in Europe or U.S. planning to save up to 60 percent costs in their IT management, reported The Economic Times.

Several data centres in U.S, UK, France or China are being monitored and maintained by Indian engineers out of Noida, Bangalore, Gurgaon and Chennai. Mohan Murthy, Director, HP Tech labs, Bangalore said, "We have the capability of monitoring, shutting down and fixing bugs in the servers by remote login from our home or any part of the world. Only in cases of a loose wire fault or physical damage do we need a human being. The need for lesser number of people saves a lot of cost and thus makes it an attractive offering for clients."

Remote Infrastructure Management (RIM), a part of the IMS which Nasscom estimates to have a market potential of $150 billion, of this about 70-75 percent of infrastructure management roles can be off-shored and India stands at an opportunity to realise $26-28 billion of this by 2013 with a CAGR (combined aggregate growth rate) of over 30 percent. On the other hand, Forrester estimates IMS to have a market size of $111 billion and Gartner $80 billion.

All Indian IT majors have strong plans to enter the Tech IMS space. Wipro acquired Infocrossing for $600 million and expects it to give a strong boost to its plans to capture leadership in the IMS space. Infosys, Mindtree, HP, Patni have also set up IMS divisions.

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