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