India’s managed IT services market will top $2.78 billion (US) by 2010, up From $1.17 billion (US) in 2007, according to International Data Corp. The fastest growth areas will be managed security, managed storage and data center services. You can find more details about the IDC forecast at Business Standard.
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Tags: Business standard | India managed services market | International Data Corp. | managed services forecast | Managed services sales
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Hi Joe;
What is unclear about this article is whether this incredible growth is fueled by network and desktop management services directly to end-customers, as a third-party back-office deliverable supporting IT service providers a la Zenith Infotech and Ingram Seismic, or both.
I wrote a blog a while back discussing the concept of Indian IT outsourcing being threatened over the next several years due to the decreasing cost advantage of these services over time, as Indian wages begin to catch up with ours - in fact Forbes forecasted that 2008 would signal the 5th consecutive year of Indian salary growth over 10%.
I surmised in my blog post that we would begin to see more offshoring oppportunities move away from India and to other developing nations over time (and it’s happening now), and eventually back to the U.S. You can read my post here: http://mspu.typepad.com/weblog/2008/03/is-the-concept.html.
Erick Simpson
MSP University
http://www.mspu.us
Erick: Yes indeed, research reports can be a little confusing. In additions to your questions, I wondered if the research covered only MSPs serving customers in India? Or did it involve India-based MSPs serving the globe? I’ve got an email out to IDC seeking answers.
I also agree that the “price advantage” is shrinking for India’s service providers. Salaries are certainly rising. But let’s remember that this is more than a price discussion. India also has a massive talent pool. The US, meanwhile, is struggling to find kids who want to earn degrees in computer sciences, etc.
It should be noted, as a point of clarification to Eric’s comment, that Ingram Seismic does not leverage any off-shore resources for any offerings in the Seismic portfolio stack. Its all domestic based.
Justin: You stole my thunder. I’m blogging a bit about this on-shore/off-shore hosting/MSP debate in the U.S. The post will be live within an hour all so. Would love your thoughts when it goes live.
Thanks for that clarification,Justin. My comment was meant to illustrate the third-party back-office support aspects of the deliverables, and not to suggest a particular geographic region where these services and resources originate.
Erick Simpson
MSP University
http://www.mspu.us