Managed IT Services in India to touch $2.78 bn by 2010

The India Domestic Managed IT Services market is expected to grow at a CAGR
of 24.9 percent to become a $2.78 billion industry by 2010, making it one of the
fastest growing markets in the Asia-Pacific region, according to IDC.

The total India Managed IT Services market in 2007 was estimated to be $1,170
million with Managed Network Services accounting for the biggest share of the
pie followed by Managed Desktop Services. This represented 20 percent of the
total India domestic IT Services market, which crossed $5 billion revenues in
2007.

According to Seepij Gupta, Assistant Manager-Software and Services Research,
IDC India, “The traditional IT outsourcing model is under siege and 'Risk and
Reward' deals are now becoming popular. Today, service providers are launching
low-cost, highly flexible service delivery platforms that leverage 'commoditized
technology' to provide more 'productized services' to customers.”

Initially the market witnessed large user enterprises adopting infrastructure
management services (IMS), as they looked for competent partners to manage their
increasingly complex IT infrastructure, said a release from IDC.

Today, even mid-market enterprises are opting for this model as they realize
the need to concentrate on the core objective of delivering value to their
customers, rather than deploy valuable management resources in running and
maintaining IT infrastructure.

As enterprises of all sizes, across verticals reap the benefits of
outsourcing their IT infrastructure, the main driver for Managed Services can be
summed up in one sentence it is all about 'do it for me' versus the burden of
'do it yourself,' it said.

According to Praveen Sengar, Senior Manager-Software and Services Research,
IDC India, a subsidiary of CyberMedia, “While engaging in outsourcing contracts,
management should have a clear vision on long-term organizational goals along
with activities that can be outsourced.”