Servers, PCs and other tech gear is cheap -- but the humans required to manage them aren't. This economic reality is leading India's National Association of Software and Service Companies (Nasscom) to make some optimistic projections for the remote infrastructure management services (IMS) market.
Though it accounts for a relatively paltry portion of the country's overall outsourcing market, Nasscom expects revenue from such services to more than double over the next five years, reaching $15 billion by 2013, reports InfoWorld.
The remote service model allays the concerns of potential clients who worry about data compromises in offshore locations, says a partner at outsourcing advisory company TPI. Nasscom has worked hard to position India as a leader in offshore security, creating a Data Security Council among other actions, says Ovum analyst Samad Masood.
McKinsey research suggests that up to 75 percent of IMS duties could be performed offshore, according to the InfoWorld article.
A challenge for Indian service providers, says the TPI analyst, will be tweaking their pricing models to incorporate costs other than labor.
Nasscom last week issued a bullish market forecast for BPO.