Core mgmt services exports to treble: report

Infrastructure management services (IMS) related exports from India is expected to trebled to over $1 billion in three year3 from the current level of $300 million.

This is the next big opportunity after business process outsourcing (BPO) for Indian technology companies, says a latest Deutsche Bank report.

IMS services include managing networking operations such as security requirement, desktop and service management, storage requirement and 24x7 helpdesk.

The Indian companies have invested in the IMS opportunity only in the last 2-3 years. "We believe IMS exports from India are to grow at an compound annual growth rate of 50 per cent plus in 3-5 years," the report adds.

Globally, IMS is an $80 billion plus market, dominated by information technology service majors such as IBM, according to a recent report by Deutsche Bank. Lehman Brothers, Farmer Insurance, AMD, Toshiba, Thames Water, Nike and NCR have already began outsourcing.

"There are many other requests for proposals in the market and we understand some core customers of other large vendors, including Infosys Technology and Satyam Computer, are turning to HCL Tech and Wipro for their infrastrucuture management needs," the report added.

The study states that despite IMS being an emerging opportunity, there are very few players such as Wipro and HCL Technologies which have been able to sustain and grow in this new business.

Experts believe IMS cannot be treated as a major opportunity as the concept of hiring an external party to manage the day-to-day IT-related needs of an organisation has not gained acceptance among Indian companies.

The report stated that companies such as HCL Comnet have grown 25 per cent quarter-on-quarter only after they consolidated their presence in the IMS vertical. "Although it is an upcoming segment only the big boys will win the game," the report concludes.