India IT Services Market and Forecast 2006-2011

India IT Services Market and Forecast 2006-2011

This report is Springboard Research’s first on the Indian IT Services market, and follows our recently released Asia Pacific excluding Japan (APEJ) IT Services report. This document is designed to offer a treetop view of the IT Services market in India, informed by Springboard Research’s high level and engagement-focused discussions with key services providers. From these discussions, we have come to understand the top providers’ go-to-market strategies and key service lines that are expected to yield a significant proportion of market growth. Within this report, Springboard also notes its key observations, substantiated by relevant market-sizing figures, and has predicted the market areas that IT Services vendors will need to assess and act on for the rest of 2008 and into early 2009.
It is important to note that Springboard Research treats India as a single-country region and also follows the same approach for Korea. It is also relevant that this report focuses exclusively on IT Services and does not cover the Indian Business Process Outsourcing (BPO) industry.

INTRODUCTION 6
EXECUTIVE SUMMARY 6
TAXONOMY 9
Springboard Research’s Definition of the Services Marketplace 9
Individual Market Definitions 10
Infrastructure Services 10
Application Services 12
Consulting Services 13
INDIA IT SERVICES MARKET OVERVIEW 14
INDIA IT SERVICES FORECASTS BY OPPORTUNITY TYPE 17
India IT Services Market – Relative Contributions to Growth 18
India IT Services Market Attractiveness Index – A Market Perspective 22
MARKET OVERVIEW FROM A SERVICES PERSPECTIVE – WHERE THE OPPORTUNITIES LIE 25
Overall Market Opportunity Review 25
Individual Market Opportunity Review 29
Device Support Services 29
Infrastructure Support Services 30
Software Support Services 31
Network Integration Services 32
Desktop Management Services 33
Network Management Services 34
Data Center Management Services 35
Enterprise IT Outsourcing Services 36
Infrastructure Hosting Services 37
Enterprise Application Integration Services 38
Application Management Services 40
Application Hosting Services 41
Custom Application Development Services 42
Infrastructure Application Integration Services 43
IT Consulting Services 44
2008 SERVICES PREDICTIONS 45
India to Be the “Epicenter of Growth” in Asia Pacific 45
Indian Enterprises Will Continue to Mature; IT Expected to be a Business Enabler, Growth Driver & Innovation Stimulator 45
Productization of Services Will Be Critical for Growth in India 46
Demand for Skills Will Accelerate; IT Services Players Will Need to Do Things Differently to Tap the Common Pool of Human Capital 46
Tier-II and Tier-III towns Will Be Fundamental for Growth 47
Services Providers Will Use Social Networking Sites to Engage with Employees, Clients and Prospective Recruits 48
India to Be the Hottest Enterprise IT Outsourcing Market in APEJ, and Globally 48
MNCs Will Rule the Roost in Few Service Lines, While Local players Will Dominate in Others 48
The Green Agenda Will Boost Opportunities in the Data Center and Infrastructure Applications Services Space; Green IT To be One of the Top 10 Priorities for CIOs in India 49
New Market Entrants Will Be Aggressive; Existing Players Must Watch Out 49
IT Consulting Will See Higher Investment from Service Players, Providers Will Use Consulting as a Typical Entry Point 50
Mergers and Acquisitions Will Be the Chosen Path for Growth 50
Newer Technologies Will Receive Some Traction from Chosen Vendors, But Will Not Have Large-scale Adoption 50
Business Continuity and Disaster Recovery Services Will Make the Headlines 51
SMBs to Become a Vendor Priority; Will Drive Volume for Domestic Expansion 51
Renewals Will Be Crucial for Higher Revenues 51
Software Will Increasingly Be Seen as an Asset; Services Pertaining to Managing Them Will Be Vital 52