November 12, 2005
Indian IT infrastructure outsourcing firms share market space with global players
India continues to be the leading destination for IT companies outsourcing business processess. However, outsourcing to India is now not only a matter of saving costs, but has become a strategy to usher in innivative market practices and provide the competititve edge. Another change that is obvious in the IT outsourcing industry in India is the emergence of domestic companies like TCS, Infosys, Wipro, HCL Comnet and Patni as providers of IT infrastructure management. These services extend to providing support in help desk and configuration managment, application packaging, and migration services.
Research firms like Nasscom and Forrester Research have indicated in their reports that there is tremendous potential in the infrastructure outsourcing sector. Forrester estimates that this market globally potentially amounts to $111 billion, of which India's share could be as high as $1 billion. Gartner's estimate even surpasses this figure. Indian companies providing IT infrastructure outsourcing services to companies in the US and Europe are aiming to use their price advantage, but are also ensuring that they have the other requisites to attract clients, including knowledge of the industry base, domain knowledge of the project, end-to-end service capabilities, inculcating relationships with clients, and adapting to specific client requirements.
As the IT infrastructure outsourcing industry matures in India, it is likely to bring in new trends in operating procedures and capabilities of vendors, such as autonomic computing, on-demand or adaptive infrastructure services, and capabilities that will apply to diverse requirements such as enterprise systems, document management, and workflow.
Indian companies need to watch out for critical errors that can set them back in their business ventures, and also take steps to activate disaster management strategies. This can ensure that they maintain their position in the same market space as the bigger players such as IBM, EDS, and CSC.
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