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In mythologies, both Indian and Western, we have had umpteen examples of
remote control like in the Mahabharata, where Jayadrathas (the King of Sindhu
who insulted Draupadi) life depended on solar positions that could be controlled
remotely. In the modern times we often hear of remote controlled PMs or CMs. And
in business parlance, we now have remotely managed IT infrastructure of
enterprises, which is gradually becoming a trend.
The emergence of remote infrastructure management (RIM) has been helped by
the fact that it cuts down not only service time, but infrastructure costs as
well.
The RIM Potential
As an independent sector, offshore remote infrastructure management (RIM)
has the potential to unleash the next large wave of outsourcing opportunity,
similar to that provided by application development and maintenance (ADM) and
BPO industries in the late 90s. According to a recent Nasscom-McKinseys report,
titled The Rising Remote Infrastructure Management Opp-ortunity, the
addressable RIM market stands at $96-104 bn, out of which $13-15 bn is likely to
be contributed by India by 2013. Though, Indias share stands at a mere $3-4 bn
currently. This growth in RIM will also result in the creation of around 350,000
additional jobs in the industry.
Regardless of the impressive statistics, would RIM too remain another
offshore darling? Not really, if we listen to all the important stakeholders.
The domestic RIM market too is growing significantly and is likely to attain a
sizable scale in the near future. India was amongst the first offshore locations
to leverage the RIM opportunity, and today it is well positioned to capture a
big chunk of the IT infrastructure management market. But now many of these
players have started looking homewards to check on the opportunities lurking on
their native shores.
RIMs Domestic Avatar
The RIM industry is growing at 75% y-o-y globally. Although, the domestic
market for RIM is slower than that, the demand is fast catching up to meet the
global pace. The overall size of the domestic market for facility management
should be around Rs 2,500 crore among which RIM contributes 15-20% at present,
roughly Rs 400 crore.
In the last two years the domestic market for RIM has started looking up.
Domestic customers are gradually accepting the process as they are getting
comfortable with its security aspects, which is a primary concern when anyone
takes control over the systems remotely, as well as delivery capability of the
service providers through remote model, explained Kiran Desai, general manager
and business head, Managed IT Services, Wipro Infotech, India and Middle East.
Previously, the remote model was meant for network management while other
aspects like end user support, data center support, application support, etc,
were not so active. However, as per the current trend, out of the total
infrastructure management business, around 15-20% comes through the remote model
and the rest happens through onsite due to customer reservations.
According to industry experts, this ratio of 20:80 is expected to rise to
40:60 in the next five years. Given that the domestic market is very active as
Indian IT firms look for the IMS opportunity. Clients evaluate delivery
capabilities based on the vendors network operating center setup.
Infrastructure management is a critical issue and the entire network must
therefore be ready for appropriate reactions. There should be operational and
technological readiness to help businesses respond quickly to opportunities and
react appropriately to unplanned events. The clients are looking for world-class
service, support, and domain experts who work closely with internal teams to
build comprehensive strategies.
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