'We are sitting on a $100 bn opportunity'

DQI Bureau
New Update

What have been the key drivers for the growth of remote infrastructure

management industry globally and in India?

The key drivers for the growth of RIM services have been technical

feasibility, cost-saving and transformational value. With the advent of

sophisticated tools and technologies, the 'remote' manageability of the IT

Infrastructure was the primary driver of this trend. The 'offshore' angle

offered a significant labor arbitrage and gave almost 10 times cost savings to

global clients, which in itself was a significantly compelling cause. However,

it's the third driver, which has made it a preferred strategy for CIOs'

worldwide today.


The transformational benefits that enterprises stand to gain from remote

infrastructure management include 24x7 expert-skill-on-tap, quality processes

like ITIL, proactive problem resolution systems, infrastructure consolidation

and optimization benefits. These coupled with our revolutionary co-sourcing

model allows customers to retain control of their strategic components such as

physical IT assets, technology refresh, policy and architecture while

outsourcing day-to-day operations.

What are the current trends as far as prevailing technologies and

solutions in the this space?

As far as the solutions are concerned, the new trends are towards areas like

regulatory compliance, ITIL process alignment, service automation and business

service management (visibility into the direct impact of IT services on business

transaction real-time). On the technology side SAP Netweaver, utility computing,

server consolidation and virtualization are the buzzwords these days.

On a higher and larger level, we can also see interesting trends like

sourcing engagements continuing to undergo a paradigm shift from traditional

total outsourcing to select or discreet outsourcing in the global market space.

More and more companies are primarily in search of flexibility.


The 'Total or Full Outsourcing Model', proposition entails a third party

service provider taking over the entire IT assets of an organization and running

it with a combination of on-site and near-shore services. This 'lock-stock-and

barrel' approach results in complete loss of control and flexibility on the

part of the CIO. In the post 9/11 world of dynamic business cycles, new

engagement models like co-sourcing approach are being opted for greater


Who are the major players in this space-both globally as well as in


Even though most Indian IT application service providers have now started

building capabilities in this space, our real competition is with the global

giants and it is a competition of models, HCL's co-sourcing offshore remote

infrastructure management model versus their Total IT outsourcing model, and it

is this competition, which has resulted in creating a clear differentiator for

companies like ours in the market.

What do you think of the future market scenario for remote infrastructure

management. How would you benefit from it?

The future for remote infrastructure management is extremely bright as more

and more fortune/global 500 companies are showing preference for Indian

specialty vendors like HCL for IT infrastructure management. More and more

components of the ecosystem will get added in the portfolio in the coming years.

This will make it a door opener for Indian companies into new accounts besides

giving them a tremendous cross-sell potential for mining their existing clients.

According to a research firm TPI, 325 deals are due for renewal during 2006

and 2007, representing over a fifth of active contracts; this opens tremendous

prospects for the offshore remote infrastructure management Industry too and

players like us are likely to benefit from this opportunity. We are sitting on a

$100 bn opportunity coming up in form of renewed contracts in the next two


Subbalakshmi BM