Study: Indian Remote Infrastructure Management Outsourcing Suppliers Targeting Bigger Buyers

According to a recent study published in The Economic Times, Indian IT services firms involved in remote infrastructure management outsourcing (RIMO), are making deals with bigger buyers in an attempt to stave off growing rivalry from existing MNC infrastructure outsourcing majors.

The study conducted by Everest Research Institute on 'Remote Infrastructure Management: Impending crisis of genre' revealed that India's RIMO services providers are targeting larger buyers and signing deals with them due to the increasing pressure to maintain growth and counter competition from MNC infrastructure outsourcing firms

The remote infrastructure outsourcing avenue is a sub classification of the tech infrastructure offshore sector. The study showed that Indian infrastructure outsourcing suppliers were being pressured to modify their game plan by modifying the kind of innovations they had brought to the table in the infrastructure outsourcing delivery market. These same innovations had once brought these firms to their heights.

RIMO is still the most rapidly progressing IO delivery model. In addition, offshore suppliers have progressed and maintained their market share. As most multinational companies in the business are establishing offshore delivery points, offshore based suppliers are being forced to adopt a strategy that puts them in between RIMO and more conservative models.

Until 2007, the RIMO market added quickly to a 66% high. But the symptoms of a downturn in the economy brought about a declining market growth of 18%.

Chief of Everest Group-India, Gaurav Gupta, commented on the strategy that needs to be welcomed by the offshore infrastructure suppliers in order to maintain growth. He said that offshore suppliers need to embrace innovation in the infrastructure service delivery approach. This requires balancing services and offering in order to compete with MNC firms as far as big deals are concerned.