India’s Managed Services Market: A Surprising Trend
At first glance, the latest research about India’s managed services market growth is hardly surprising. Springboard Research claims spending on IT managed services in India will top US$3.8 billion in 2013, up from US$1.6 billion in 2009. That’s an impressive 22.9 percent compound annual growth rate. But the report’s really interesting twist involves the banking vertical.
In terms of adoption among verticals, the report found:
“Banking, Financial Services and Insurance (BFSI) organizations remain the largest contributors to the managed IT services market with a share of 28.2 percent, followed by the Manufacturing and Government verticals.”
I wonder: Is the situation similar in the U.S.? Generally speaking I doubt it. But perhaps I’m wrong. U.S.-based MSPs such as HEIT have successfully targeted the banking and financial services verticals. And Springboard Research also points out a clear distinction between (A) IT managed services vs. (B) strategic outsourcing engagements.
Generally speaking, it sounds like India businesses are leveraging IT managed services providers for everyday tasks (PC and server maintenance, network maintenance, and managed application services) rather than complete IT team outsourcing.
No doubt, U.S.-based MSP software companies are eying India. Kaseya has signed a long-term deal with Tata. And companies such as MSPOne have promoted Level Platforms and Autotask in India. But I must concede, I didn’t think there was such a big opportunity for MSPs within India’s financial services sector.