While Europe and the United States struggle with the recession, it’s an opportune time for managed services software providers to set up shop in India, according to Prakash Chaudhari (pictured), the former director of business development at NetEnrich. In his personal blog, Chaudhari offers some compelling arguments for managed services in India.
Among Chaudhari’s assertions:
“It’s time for our vendor friends, especially in the US to take notice of the India market, particularly in the time of an economic recession. I think the time is ripe to start operations in India. The economic slowdown has affected India, no doubt, but India will continue to grow even in the times of trials and tribulations at 6-7 percent. The India story is intact; in fact it will acquire more heft in times to come. Our banks are sound, our savings rate is in the mid 30s and of course the demographic is on our side. Amid the global turmoil at least 10 PE and VC [funds] have set up offices in India over the past 3-4 months.”
Some Early Successes
Some MSP software providers are following Chaudhari’s advice. Kaseya in November 2008 opened an office in India and the company has sold roughly 100,000 endpoint licenses in that country.
I don’t want to make a blanket statement by saying all MSP software companies should push into India. Certainly, business priorities vary greatly from company to company. But I will offer this observation: MSPs (and software providers) that want to do business globally will need to open regional offices around the world.
Some MSP software companies continue to depend far too heavily on US-based offices, offering few “feet on the street” outside of North America. The net result: Some companies could wind up looking arrogant and out of touch with local business cultures.
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Posted In: Asia
Tags: India Managed Services | Managed Services Leadership | NetEnrich | Prakash Chaudhari
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A quick note of caution: Today Satyam, the IT consulting firm in India, announced an alleged accounting scandal. Many of India’s IT consulting firms are watching their stocks fall as a result. Unfortunately, they are “guilty by association” and suffering from the negative Satyam news.
But Satyam’s fall from grace should NOT be confused with the overall IT market in India. I’ve covered Satyam for several years as a journalist, and our company (Nine Lives Medai Inc., MSPmentor’s parent) has vocally stated there’s something not quite right at Satyam.
So, we’re on the record saying people should be skeptical of Satyam. But we’re also on the record stating that India’s IT opportunities — including managed services — remain strong. And you can bet a lot of Satyam’s IT consulting business across the globe will now be re-bid to other consulting firms.
Best wishes as you seek your share of Satyam’s pie.