The remote management infrastructure (RIM) market in India is all set to grow multi-fold from the current $3.2-3.6 billion to $13-15 billion by 2013.
At this size, the domestic market will comprise 50% of the $26-28 billion global RIM market, growing at a compound annual growth rate (CAGR) of 30%, according to a study released by software industry body Nasscom on Thursday.
The process would create 3,25,000-3,75,000 jobs by 2013, the study, conducted by management consulting firm McKinsey & Company, predicted.
?Given its leadership in IT and BPO, India has a substantial head-start over other low-cost locations. India-based vendors have increasing scale and maturity, deep customer relationships, access to sound technical infrastructure, and access to and the ability to manage a large low-cost talent pool,? said Vivek Pandit, partner of McKinsey & Company.
The infrastructure management services industry is moving towards a remote delivery model where services are increasingly delivered by vendors and captives from low-cost locations.
The total addressable market of RIM, which implies remotely managing the infrastructure such as servers, database and networks, is estimated to be at $96-$104 billion globally and the industry would record revenues of $26-$28 billion by 2013, the report stated.
The study said so far vendors and captives in low-cost locations have captured a mere $6-7 billion of this opportunity. This coupled with the fact that 70-75% of infrastructure management roles can be outsourced, suggests this could be a new frontier for growth.
?Like IT and BPO, we see RIM as a large opportunity requiring focused attention and nurturing. It?s a critical service requiring sophisticated tools and reflects high customer confidence. By increasing RIM services the Indian IT industry is moving towards becoming a fully integrated service provider,? said Nasscom president Som Mittal.
The majority of growth is likely to come from offshoring midrange services, and network towers, likely to account for approximately 70% of the overall opportunity during this time.
In terms of industries, the banking, financial services and insurance industries will lead this growth followed by the telecommunications industry.