IDC: Business dynamics are driving the need for MSPs in India

IDC has recently concluded a survey on Managed Services in India which reiterates the point that changing business dynamics are driving the demand for managed services in the country.
Indian organizations, faced with capital crunch to support strategic initiatives, are struggling to align their current resources. The organizations are tasked with improving their financial management, lowering the cost of operations and driving innovation. These corporate imperatives are forcing the Indian companies to look at managed services as an obvious choice. Over 50% of the respondents indicated that these imperatives are driving their companies to increase the overall spend on managed services.

Kavita Bhadauria, Research Manager for IT Services & Software, IDC, stated, More customers are realizing the value that managed services are capable of providing for their businesses. Indian organizations are increasingly accepting that outsourcing is not just an IT strategy anymore, it has rather become an integral part of the business strategy.
 
The survey findings also reveal that few organizations attributed the failure of contract to lack of timely response and gaps in service level attainment. Almost 25% of the respondents indicated that they have executed early contract renewals and when asked about reasons for doing so, they quoted pricing negotiations as they key driver.
 
When asked to predict their overall spending on managed services in the 12 months following the time of survey, 63% respondents were confident that the spend on managed services will increase, while 28% predicted it to remain the same, leaving only 10% who expected the amount spent on managed services to decrease over the year.