The infrastructure outsourcing market is becoming increasingly disruptive. Indian IT majors such as HCL Comnet, Infosys, Wipro Infotech, TCS and Accenture India are gearing up to challenge established players such as EDS, CSC, and IBM in the infrastructure outsourcing market , reports Economic Times.
While the earlier trend was to give the entire contract to a single player, multiple sourcing is now gaining ground. This will benefit Indian players who are comparatively recent entrants.
Restructuring the established $130 billion market includes the advent of multi-sourcing, changes in technology, separation of assets from services and newer entrants challenging legacy players.
With networks becoming increasingly commoditised, clients are no longer ready to pay a mark up on servers but would rather buy-on-demand in smaller increments to suit their capacity needs. While the traditional model of infrastructure outsourcing meant long term deals with companies taking over assets to manage them today the approach has changed.
There is concentration on short term, selective outsourcing and consolidations in business is leading to standardisation in infrastructure outsourcing.
Incidentally the remote infrastructure outsourcing model (RIM) is the fastest growing segment of the infrastructure outsourcing pie.
According to Nasscom, the RIM market in India is pegged at $500 million and is expected to hit $7 billion by 2010 and this is where newer entrants are expected to make significant contributions.
According to an Edelweiss IT report, a large number of multi-billion contracts are coming up for renewal, and the client organisations are likely to segregate them into several smaller deals.
Infrastructure outsourcing will continue to grow as a on-shore, off-shore mix model with an emphasis on global delivery systems and disaster recovery management.
The importance of getting best of breed solutions will continue as India`s global delivery model is maturing. With the likes of Accenture`s Bangalore centre getting a ISO 20000 certification, the client faith is only set to increase.
With 80% of the infrastructure the same, companies will have to differentiate on the basis of catering to industry segments.
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