Over the last five years, India’s IS Outsourcing segment has been on an accelerated growth path, experiencing a CAGR of over 19 per cent. Infrastructure management is a non-discretionary mission-critical activity and key growth drivers for this segment include a compelling cost advantage, evolution of technologies, availability of a skilled talent pool, and increased maturity of Indian vendors offering end-to-end infrastructure services.

Key Highlights during FY2012

• In FY2012, IS Outsourcing segment to touch USD 7 billion from USD 3 billion in FY2008, a growth of over two times
• IS outsourcing segment has consistently been the fastest growing segment within IT services- share in the overall IT services segment has increased from about 15 per cent in FY2008 to about 17 per cent in FY2012
• The segment accounts for nearly 26 per cent of incremental IT exports growth
• Demand drivers- Improvements in the country’s infrastructure backbone especially telecom and its increased reliability, availability of low-cost, high speed bandwidth, cost reduction, move to asset light models, development of remote management tools, etc.
• In recent times Cloud Computing/Virtualisation technologies that are enabling everything-as-a-service has resulted in the increase in demand for data centres – another key candidate for IS outsourcing services demand