Solution providerís perspective
Outsourcing Infrastructure Management
Outsourcing is viewed as a strategic decision that facilitates
cost containment and also provides knowledge domain. Here are the vendors and
service providers' view on the current and emerging outsourcing trends in the
Indian enterprises. by Minu Sirsalewala
Organizations invest vast sums of money to build IT infrastructure that support
their business goals and objectives, but many fail to deploy even the most basic
tools to effectively manage their IT resources.
Infrastructure Management (IM) applications play a critical role in monitoring
and measuring the performance of the network, across local and wide area links.
But in reality is there a trend towards making the business more agile? There
are also questions like are Indian enterprises actually outsourcing their IT
IM needs? Is there a trend towards making businesses more agile? What are the
vendors and service providers offering to address these issues?
Businesses today do not view outsourcing as a tactical decision to save cost.
They rather view it as a strategic business decision that facilitates cost containment
and provides a knowledge domain to bring innovation and provide competitive
The range of activities that are outsourced, vary from network management, helpdesk
operations, data center operations, applications management, to business process
Bithin Talukdar, Market Development & Alliances, Software Global Business
Unit, HP says that the market today has three basic categories of organization
requirements. (Refer to Diagram)
In the first category, 75 percent of all organizations look at IT as being operations-centric.
The key management theme for such organizations is to manage the infrastructure
through control of the infrastructure and operate as a technology provider.
In the second category, 20 percent of all organizations look at IT as being
service-centric. The key management theme for such organizations is to control
computing services, run the infrastructure as a business, and operate as a service
In the third category, five percent of all organizations look at IT as being
business-centric. The key management theme for such organizations is to enter
the business planning process, deliver services for competitive advantage, and
be recognized within the organization as irreplaceable business partners in
the company's progress.
Most Indian companies are in Phase I of maturity. Many of the larger organizations
in this category are focusing towards outsourcing non-core activities like operations
management through their Facilities Management (FM) vendor. Companies in Phase
II of the maturity curve are exploring the option of outsourcing leading services
like help desk services, network & systems management services, and application
Organizations like HCL Comnet, Wipro, GAVS have been providing these services
through their NOC.
The concept of FM has been doing the rounds in India, for a long time. Rajendra
Dhavale, Consulting Director, Computer Associates India says, "FM has now
evolved to include outsourcing IM functions like network, server, and applications
management." Organizations are also outsourcing database administration,
owing to lack of availability of specialized skills.
Rolta's, Executive Director (Enterprise Applications & Smart Cards), V.
K. Sawarkar explains, "Indian companies have been outsourcing services
like FM for quite some time, and have started responding to the needs of managed
According to Manoj Kunkalienkar, Executive Director and President, ICICI Infotech
Ltd., "The concept of outsourcing IM is starting to mature as an independent
business model. Many Indian companies have started evaluating the possibilities
of outsourcing, but are skeptical due to perceived lack of control over the
vendor. But as they have realized the benefits of the approach, the initial
apprehension of giving control of one's critical systems to outsiders is gradually
The outsourcing market
Large enterprises usually take the initiative to outsource. The market is in
a growth phase but is yet to mature. Akash Saraf, CEO & Jt. MD of Zenith
Infotech Ltd. opines that approximately 35 percent of the Indian enterprises
outsource IM services. This could go upto 65 percent in the next two years.
The major areas of outsourcing are monitoring and management of WANs, backup,
storage, and desktop support. A fair amount of IT security systems is also being
The core IT infrastructure elements most likely to be outsourced are server
monitoring and management, network element monitoring and management, remote
helpdesk services, remote NOC services, and remote technical assistance center
Solution provider's role
A solution/service provider plays an active role to offer functionality-rich
solutions to enable infrastructure management to the end user organization.
There are three kinds of vendors who offer IM solutions. The first kind provides
tools and technology to automate the IM task. The second kind comprises specialized
vendors who understand particular aspects of IM like security and storage. The
third kind is the overall integrator.
A service provider has to ensure that remote IM services are tailored to individual
customer's requirements. In addition to arterial monitoring or management services,
the provider needs to offer various support elements like SLAs, escalation procedures,
ticket logging and reporting mechanisms.
The IM services outsourcing industry will see emerging trends like:
- Autonomic computing that will help clients optimize/reduce the infrastructure
- On-demand or adaptive infrastructure, which is a concept of 'pay as you
- Features that will support confluence of all business applications like
enterprise systems, document management, and workflow.
Akash Saraf of Zenith added that the two areas that will see momentum in the
next three years are:
- Application monitoring, database management, and desktop support, which
will be completely outsourced to a third party.
- A trend of the vendor providing network management remotely from the vendor's
Sharad Sanghi, Managing Director & CEO, Netmagic Solutions Pvt. Ltd. says,
"If 2003 could be considered as the year that hailed the acceptance of
remote IM by Indian enterprises, 2004 will see the proliferation of the model.
Qualified remote infrastructure management providers will be able to provide
one-stop solutions and services for their customers."
Yet another critical area and a visible trend in the enterprise space is that
businesses need to be responsive to changes and be agile to stay ahead. And
the supporting IT infrastructure must be able to understand this change.
The adaptive enterprise
Most vendors and service providers are of the opinion that adaptive enterprise
IM is the next big wave and the only way for enterprises to stay competitive.
Adaptive Management is the integration of people, processes, and technology
to run IT as a business and automate the dynamic link between business and IT.
In order to evolve into an adaptive enterprise CIOs need to control their environment
by using management software to manage discrete or clustered resources. They
then need to optimize their environments to increase utilization, performance,
and availability. According to Talukdar of HP, only 20 percent of the organizations
have matured to this level of infrastructure and environment.
The final step will be to automate processes to link business needs through
software that drives adaptive, and virtual infrastructure.
CA recognizes that this business agility can be achieved primarily through more
effective IT management, rather than through extensive infrastructure modification
Managing on-demand computing incorporates three major benefits:
- Alignment of IT with the business: The IT infrastructure is managed to
support real time business objectives efficiently, superseding the industry's
current techno-centric focus.
- Efficiency: Enables an authorized user easier access to role-relevant services
and information in an easy-to-use fashion.
- Responsiveness: The IT infrastructure will have capabilities to adapt automatically
to technical malfunctions through superior analytics for diagnostics.
The manufacturing and telecommunications sectors have witnessed an increased
activity in the direction of IM services. The sectors poised for growth in this
direction are health care and education. Enterprises are also considering remote
IM services; which is a good example of adaptive enterprise IM services.
Sharad of Netmagic says, "Enterprises in India are steadily migrating the
responsibility of IT IM to service providers, who in turn might have adaptive
monitoring or management systems deployed. The trend is also catching on in
the enterprise segment. More and more customers are asking their service providers
to provide them with adaptive systems."
Minu Sirsalewala can be reached at firstname.lastname@example.org
Hewlett-Packard India Pvt
HP infrastructure solutions:
Business Continuity - solutions
to ensure your business stays on in an always-on world.
Enterprise Integration -
solutions to dynamically link systems to deliver real-time information.
IT Consolidation - solutions
to dynamically link systems to deliver real-time information.
Management - solutions for
immediate knowledge of changing business conditions and intelligent response
On Demand - solutions to
match your capacity and cost with your business needs.
Security - solutions to
match your capacity and cost with your business needs.
Virtualization - solutions
to increase the flexibility and utilization of your IT assets.
- Reduce and manage costs
- React quickly to changing business needs
- Optimize and streamline your infrastructure
- Deliver a greater return on your IT investment
All verticals irrespective
Market Development & Alliances
Software Global Business Unit
HP India Pvt Ltd
Computer Associates India
Unicenter Product Line for
Brightstor for Storage
eTrust for Security
A comprehensive enterprise
management solution, completely modular in its offering which gives giving
customers a choice to pick and choose functionality most needed, to suite
their specific demands.
Across all verticals, as
the products are modular in nature, they cater to the entire spectrum
of the market.
Computer Associates India
IBM Infrastructure and Systems
Testing and Scalability
Systems Management Consulting
Systems Management Services
IT Infrastructure Library
(ITIL) - IBM Canada only
Services designed to help
effectively enable or enhance your e-business initiatives
Consulting services to help
you assess, plan, design and manage your IT infrastructure
Across all industries, irrespective
Cater to the entire spectrum
of the market
IBM India Ltd
Zenith Infotech Ltd.
IP-based, quick to install,
All verticals only in SMEs
CEO & Jt. MD
Zenith Infotech Ltd.
|Netmagic Solutions Pvt. Ltd.
Remote Infrastructure monitoring
and management services
- Remote Server Monitoring and Management
- Remote Network Element Monitoring and
- Remote Network Operations Center (NOC)
- Remote Technical Assistance Center (TAC)
- Remote Helpdesk Services
- Remote ROTA/shift scheduler systems
Driven by customer preferences,
listed here can be adapted
to customers' diverse requirements.
Variety of tools and platforms
to offer these services, which may include IBM's Tivoli, or premier CRM
packages like BMC's Remedy, or other tools developed in-house by NetMagic.
Managing Director & CEO
Rolta India Ltd.
ISP and Datacenter Infrastructure.
solutions & services in partnership with Computer Associates.
Linux based solutions under
the brand RoltaSecure.
Web based e-Security services:
Vulnerability notification and assessment services; remote monitoring;
intrusion detection system; network monitoring.
Shrinivas K. Rao
Tel. 022-2832 6666/2826 2222
ICICI Infotech Limited
IT Facilities Management
Data Center Management
Network Operation Center
DBA / System Admin.
Desktop Facilities Management
Remote Infrastructure Management
Provides services throughout
the wire-line or wireless network lifecycle from design and implementation,
through to ongoing, continuous support and operation.
Managing, designing, implementing
and maintaining security architecture, and backup architecture.
Real-time analysis and proven
ASP Offfering on Monitoring
for aspects like:
- Application management
Solution addresses four
areas - monitoring, fault management, administration, and capacity planning.
ISO 9002 certified/ITIL
processes-compliant Infrastructure Management Center (IMC) with best-of-breed
tools like HP OpenView, CiscoWorks, and Unicenter to offer the capability
to manage client infrastructure.
COO - Global Operations