The India Managed IT Services market is expected to grow at a compoud annual growth rate (CAGR) of 24.9 per cent to become a $2.78 billion (Rs 12,232 crore) industry by 2010, says IDC making it one of the fastest growing markets in the Asia/Pacific region.
The total India Managed IT Services market in 2007 was estimated to be $1,170 million (around Rs 5,148 crore) with managed network services accounting for the biggest share of the pie followed by Managed Desktop Services. This represented 20 per cent of the total India domestic IT Services market, which crossed $5 billion revenues in 2007.
The report notes that the notion of managed services is no more just hype or an industry buzzword. 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.
Praveen Sengar, Senior Manager, Software and Services Research, IDC India, said: "While engaging in outsourcing contracts, management should have a clear vision on long-term organizational goals along with activities that can be outsourced. A sound process to select the right vendor must be employed, evaluating prospective partners on multiple parameters and not just cost alone."
Moving forward, the fastest areas of growth will be Security, Storage and Data Center Services. IDC predicts Security and Storage Services to grow at CAGR of 31 per cent and 28 per cent respectively, over the next three years (2008-2010). Today the market for these services is still nascent. However, their adoption rates are expected to pick up at a fast pace as these services become inevitable for the ‘extended business enterprises’.
