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SERVICES - Outsourcing E-Infrastructure

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DQI Bureau
New Update

The domestic services market grew at a healthy 31% in 1999-00

over the previous year. Out of IT services, software and education services grew

at a faster clip than hardware services. The top vendors in hardware services

remained Wipro and CMC. The latter continued to provide maintenance support for

more than 40 different vendors. Among the major sites supported by CMC for

systems maintenance were National Stock Exchange with the Stratus machine and

Bombay Stock Exchange with the BOLT systems. The total value for the maintenance

of these sites exceeded Rs 10 crore. Other top hardware service vendors were HCL

Infosystems, IBM Global and CMS Computers. In the case of IBM Global, strategic

outsourcing accounted for Rs 29.7 crore and technical services accounted for Rs

18.7 crore.

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Service Market Segmentation

1999-00



Rs lakh
1998-99



Rs lakh
Growth



%
Hardware

services
Own systems maintenance 50,150 42,500 18
Third party maintenance 63,707 47,999 33
Facilities management 4,375 3,500 25
Total 118,232 93,999 26
Software

services
Custom SW development 114,536 82,461 39
Turnkey projects 125,485 94,350 33
Consulting, others 54,720 45,633 20
Total 294,741 222,444 33
Education

services
Corporate training 10,207 9,805 4
Indiavidual training 145,854 109,550 33
Total 156,061 119,355 31

Similar to previous years, turnkey projects consisted of

system and network integration projects. The top systems integration vendors in

1999-00 were IBM Global, CMC and Aptech. The main application areas for system

integration were ERP, documentation, customer billing, banking, CRM and

e-governance. Among the top projects were ERP implementation at ONGC, Sahara

India, Larsen & Toubro, Asian Paints, Thermax, Havell’s India, ITC Hotels,

Shyam Ahuja and Sterlite. The ERP vendors involved at these customer sites were

SAP, i2 Technologies, Ramco Systems, Baan and Intentia. A new face on the scene

was Eastern Software Systems with its three-tier ERP application called MakESS

targeted at the SME segment. The major customers for MakESS in 1999-00 were

Delhi Metro, Baroda and Sugam Dairy, Chennai Municipal Corp, SSD Oil Mills,

Ortel and Eurotherm. The central and state governments were also active

commissioning various multi-technology and multi-vendor projects. Some of the

top projects in the government sector included, RBIs cheque processing system

from IBM, Bankflow from Datanet for M Visvesvaraya Cooperative Bank, ECIL’s

online processing system for Chennai Municipal, document management system from

ECIL for NTPC, national card system from TCS for Ministry of Home Affairs and

computerization of Punjab state’s tax department.

The top network integration vendors in 1999-00 were Crompton

Greaves, Wipro and Hughes Escorts. The main application areas were enterprise

networking, ATM and branch office networking for banks, ISP infrastructure, call

centers, computer telephony and ecommerce.

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Hardware Service Vendors

Rank Vendor Value (Rs lakh) 1 Wipro Limited 11,122 2 CMC Limited 8,387 3 HCL Infosystems 7,000 4 IBM Global Services 6,911 5 CMS 3,240 6 Accel ICIM 2,263 7 Redington India 1,596 8 Allied Digital Services 1,475 9 DCM Data Systems 1,420 10 Tata Elxsi 1,275

Some of the biggest projects in network integration involved

networking of banks including enhancement of ATM networks and internet banking.

CMC was involved in branch networking of Bank of Baroda, the Andhra Pradesh

state government and upgradation of the ERNET network. HCL Comnet set up a

hybrid WAN for the Bank of Madura, and both Indian Bank and HDFC Bank signed up

for BASE24 software to enhance their ATM networks. The corporate segment also

chose to expand its WANs through VSATs. Telstra V-Comm implemented a VSAT

network for ONGC, Bharti BT did it for SRF Ltd, and Hughes Escorts for Jammu

& Kashmir Bank. Financial institutions also sought to make their networks

more robust. Both National Stock Exchange and Stock Holding Corp sought to

implement Unicenter TNG from Computer Associates for improved network

management.

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Systems Integration Vendors

Rank Vendor Value (Rs lakh)
1 IBM Global Services 10,191
2 CMC 7,767
3 Aptech 6,492
4 PSI Data Systems 1,580
5 Tata Infotech 1,161
6 Datapro 983
7 CMS Computers 560
8 Pentasoft

Technologies
433
9 SGI 248
10 Intelligroup Asia 246

Another important application area was call-centers and

computer telephony integration. Servion Global Solutions received orders from

ICICI Bank and Timesbank, and Hughes Software from Tata Donnelly. Apollo

Hospital sought DoT assistance to implement a telemedicine project, amongst

others.

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Top Network Integration Vendors

Rank Vendor Value (Rs lakh) 1 Crompton Greaves 6,500 2 Wipro 5,575 3 Hughes Escorts 4,451 Communication  4 CMC 4,215 5 IBM Global Services 4,064 6 Bharti BT 1,654 7 Datacraft RPG 305 8 CMS Computers 200 9 Pentasoft Technologies 126 10 Mediaman Infotech 105

The development of private ISP infrastructure was also

responsible for a number of network integration orders. PCS Industries received

an order from Netvision Telecom, Euclid from Rising Sun and HCL Comnet from

Caltiger.

In 1999-00, close to 80,000 India-based web sites were germinated. However,

only a miniscule few deployed ecom applications on them. With the corporate

segment realizing the importance of web business and the exponential growth of

net users, a substantial share of networking orders is likely to come from this

area in the future. Also, with new technologies like server-based computing,

remote access and wireless computing, the demand for IT services is likely to

change dramatically in the coming months.

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