Offshore Remote Infrastructure Management

Remote infrastructure management is something that virtually every organization does every single day. But people somehow think there's a material difference if that work is done offshore

In fact, the offshore delivery of infrastructure management services—from network services and help desk support to server maintenance and desktop management—is becoming more mainstream.

THE MARKET

The total market for remote infrastructure management services is anywhere from $80 billion to $120 billion. Experts say that offshore take is growing at 20 percent to 30 percent annually, as global IT services providers amp up their offshore delivery capabilities and CIOs look to cut infrastructure costs. Approximately 70 percent to 80 percent of vendor IT outsourcing proposals hitting the market today contain some form of offshore infrastructure delivery of services.

BIGGER SCOPE?

Offshore vendors—particularly the bigger, Indian multinationals such as Wipro and Tata Consultancy Services (TCS)—see infrastructure management as the next big source of revenue as demand for offshore application development and maintenance stabilizes. In February, India's National Association of Software and Services Companies (Nasscom) published a report (compiled by McKinsey) proclaiming that up to three-quarters of all infrastructure management roles could be offshored, creating a $26 billion to $28 billion revenue opportunity by 2013, of which Indian companies could capture about half.

Percent of infrastructure support functions that can be offshored:

• Network Services 80%
• Internal Help Desk 75%
• Servers 70%
• Maintenance 60%
• Administration 35%
• Mainframe 30%
• End-user Devices 15%

Competition for Your Infrastructure Dollars

U.S. and European vendors do a hefty business in infrastructure management. But with aggressive growth strategies, India's IT services providers are poised to win more.