India, known for its thriving IT industry, is witnessing a significant shift to managed IT services. This is largely because organizations find it difficult to attract and retain technical talent. With high attrition rates and a scarcity of skilled professionals, they struggle to build and maintain robust in-house IT teams.
This challenge is particularly pronounced in sectors such as oil, pharmaceuticals, and banking because technical talent is drawn to technology-focused organizations, not to support functions in organizations within these industries.
Moreover, even large organizations recognize that although IT is a crucial business enabler, it is still a support function. Instead, they are increasingly relying on the expertise of best-in-class service providers to manage their technology roadmap and meet their business expectations. This strategy can also help them take new products and services to market faster.
According to an IDC report, spending on managed technology services in India is set to grow at a compound annual growth rate of more than 9% over the next five years.
The benefits of managed IT services
Managed IT services offer several advantages that resonate with organizations in India.
Firstly, technology changes rapidly and becomes obsolete just as fast. Without dedicated technology teams, organizations struggle to keep up with the latest advancements and make informed decisions about how and when to adopt new technology.
Managed service providers are experienced in navigating this complex landscape and knowing when and how to implement and integrate the right technologies.
Secondly, it can be overwhelming for organizations to manage multiple vendors and diverse technologies. By partnering with a managed service provider, they gain access to expertise in managing the multivendor landscape. Having a single point of contact for this complex undertaking also simplifies operations.
Managed services in demand
In the Indian market, certain managed IT services are in high demand:
- Cybersecurity is at the forefront, given the rising number of cyberattacks and the need for secure operations.
- Network management is another key area, particularly for organizations with extensive geographic spread, such as banks. These organizations need robust network management to deliver seamless connectivity, high availability, and low failure rates across multiple locations and in tightly regulated environments.
- Data centre management and systems management, including storage, virtual machines, and cloud services, also rank highly. With the increasing adoption of multicloud services, organizations require efficient management of diverse infrastructure to ensure uninterrupted operations and minimal downtime.
Spotlight on cybersecurity
Cyberthreats are escalating globally, and India is no exception. Amid the country’s rapid economic growth, more organizations are becoming potential targets for cyber attackers.
Back in 2022, a Frost & Sullivan and NTT DATA report, Preparing a Cyber Resilient Enterprise with Advanced Threat Detection, found that 46% of Indian organizations had reported social engineering attacks in the previous two years. There had also been a sixfold increase in ransomware attacks since early 2020, with critical infrastructure often targeted.
Potent cybersecurity measures are therefore crucial in finance, retail, manufacturing, IT, healthcare, and other sectors, and organizations are investing time and resources in building strong security postures and threat-management capabilities.
However, the availability of cybersecurity talent remains a challenge. The demand for experienced and certified professionals far exceeds the supply, making it difficult for non-technology organizations to attract and retain such talent. Managed IT services provide a viable solution by offering access to expert cybersecurity resources.
Taking the long view
When considering the cost of implementing managed IT services, CIOs and CTOs should know that the full benefits may not be immediately apparent. It takes time for service providers to analyze a customer’s data, identify recurring issues, and implement automation and AI tools.
Thereafter, though, these services will lead to increased productivity and cost savings, among other benefits. Taking a long-term view is therefore crucial when making the shift to managed IT services, as it is an investment that yields returns over time.
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