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Managed IT Services in India to touch new heights

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CIOL Bureau
New Update

BANGALORE,INDIA: The India Domestic Managed IT Services market is expected to grow at a CAGR of 24.9 per cent to become a US$ 2.78 billion industry by 2010, making it one of the fastest growing markets in the Asia/Pacific region, according to IDC, premier global provider of market intelligence, advisory services, and events for the IT, telecom and consumer technology markets.

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The total India Managed IT Services market in 2007 was estimated to be US$ 1,170 million 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 US$ 5 billion revenues in 2007.

In the words of 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.”

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“Today, service providers are launching low-cost, highly flexible service delivery platforms that leverage ‘commoditized technology’ to provide more ‘productized services’ to customers.”

The notion of Managed Services is no longer 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, 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.

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