The document discusses remote IT infrastructure management (RIM), which allows enterprises to manage their IT infrastructure remotely through offshore management centers. Key points: 1) RIM services have evolved due to the maturity of offshore delivery models and improvements in remote monitoring tools that allow over 85% of infrastructure to be managed remotely. 2) Common RIM services include helpdesk support, system administration, monitoring, maintenance and more. 3) Drivers for RIM include lower costs, 24/7 support, and utilizing skilled resources in low-cost countries like India. The market for RIM is growing and expected to surpass $1B delivered from India to US companies.

1. Project Report
TOPIC:
“REMOTE IT Infrastructure Management ”
Prepared By:
Project Guide:
Mr. D.P. Goyal P.R Jairaman
IMT, Ghaziabad
EM- 04037
PGDBM (P/T)-2004-2007
Institute Of Management Technology
Post Box No: 137 , Raj Nagar
Ghaziabad (U.P) 201001
1

2. 1. Abstract
The recently launched NASSCOM-McKinsey Report 2006 yet again reaffirmed views of the
global gurus that Remote Infrastructure Management (RIM) Services are all set to become the
next star of the Indian IT Industry. It clearly states that “going forward, the more traditional IT
outsourcing service lines such as hardware and software maintenance, network administration and
help desk services will account for 45 per cent of the total addressable market for offshoring and
are likely to drive the next wave of growth. . Service lines that have driven recent growth, i.e.,
application development and maintenance (ADM) and R&D services are already 30-35 %
penetrated and are not as likely to grow dramatically”.
The Remote/offshore part was easy with BPO having already paved the way for proving service
delivery effectiveness from an offshore location and with the advent of sophisticated tools and
technologies that enabled remote IT management the proposition was further solidified.
International research firm IDC also declared that “more than 85% of infrastructure components
can be managed from a central remote location. These components encompass servers/systems,
databases, networks, storage, security, applications and e-business infrastructure. Through
managing these components from a remote location, companies can cut down their cost of
infrastructure operations and management by 40-60 %, also gaining access to expert ‘skill-on-tap’
on a 24x7 basis”
For decades the global giants who had been ruling the Infrastructure Management Services (IMS)
market boasted of a very rigid model of service delivery to companies; which is often termed as
the ‘Traditional IT Outsourcing Model’. In the traditional outsourcing model, a third party service
provider would take over the entire IT assets of an organization and run it with a combination of
on-site and near-shore services. This approach came with a ‘lock-stock-and barrel’ proposition,
wherein the entire IT operation was handed to an outside provider with complete loss of control
and flexibility on the part of the CIO.
Remote Infrastructure Management Services ensure that enterprises enjoy an effective, efficient
and productive IT infrastructure operation, while optimizing its investments in technology,
people and processes and guaranteeing greater quality and increased end user delight.
2

3. 2. Declaration
This Project Report is submitted in total fulfillment of the requirements for PGDBM
(P/T) at IMT, Ghaziabad. I declare that this Project Report is my own work and that it
does not contravene any academic offence as specified in the University's regulations.
No portion of the work presented in this report has been submitted in support of another
award or qualification at either of the partner institutions or elsewhere.
I confirm that all this work is my own except where indicated, and that I have:
Clearly referenced/ listed all sources, as appropriate
Referenced and put in inverted commas all quoted text (from books, web, etc)
Given the sources of all pictures, data etc. that are not my own
Not made any use of the report(s) or essay(s) of any other student(s) either past or present
Not sought or used the help of any external professional agencies for the work
Acknowledged in appropriate places any help that I have received from others (e.g.
fellow students, technicians, statisticians, external sources)
I understand that any false claim for this work will be penalized in accordance with the
University regulations.
Confidentiality
I confirm that this Project Report does not contain information of a commercial or
confidential nature or include personal information other than that which would normally
be in the public domain unless the relevant permissions have been obtained.
Copyright
The copyright for this Project Report remains with me.
3

4. 3. Acknowledgements
The inputs obtained from the consultations and researches were used as the basis for
arriving at the recommendations on the road map for the proposed Remote IT
Infrastructure Management – A revolutionary Mega trend in the field of IT Infrastructure
Management: Research Project.
I wish to express our sincere gratitude and indebtedness to our course instructor Prof.
D.P. Goyal for his invaluable guidance and support throughout the course of this
project. His able mentorship was instrumental in the successful completion of the project.
I would also like to thank all my friends and classmates and colleagues who helped me
whenever I needed them and enriched my work with their invaluable suggestions.
I also wish to express my gratitude to my colleague Mr Atul Kumbhkarni for his valuable
suggestions which helped in enriching this Research Project.
4

5. 4. Contents
1. Abstract ........................................................................................................................... 2
2. Declaration...................................................................................................................... 3
3. Acknowledgements......................................................................................................... 4
4. Contents .......................................................................................................................... 5
5. Introduction..................................................................................................................... 6
Outsourcing to India can be categorized in the following manner: ................................ 6
Infrastructure outsourcing representing almost 1/3rd of the total outsourcing market... 6
5.1: Approach to Assignment: ........................................................................................ 7
6. REMOTE INFRASTRUCTURE MANAGEMENT...................................................... 8
6.1: Evolution of RIM..................................................................................................... 8
6.1.1: Maturity of the offshoring (Global Delivery) model:....................................... 8
6.1.2: Technical feasibility:......................................................................................... 9
6.2: The Existing Scenario.............................................................................................. 9
6.2.1: Remote Infrastructure Management Services................................................. 10
6.3 Why Remote Infrastructure Management:.............................................................. 12
6.4 Growth Aspects:.................................................................................................. 13
7. Sourcing Models Prevalent ........................................................................................... 15
8. RIM – The India Advantage.......................................................................................... 18
Manpower: ................................................................................................................ 18
Location : .................................................................................................................. 18
Infrastructure:............................................................................................................ 18
8.1 RIM – Beyond a niche IT space: a great career opportunity .................................. 18
8.2 The Road Ahead ..................................................................................................... 21
RIM Adoption Scenarios: ............................................................................................. 21
9.Competitor Tracking...................................................................................................... 23
9.1 Global Delivery Infrastructure Management Evaluation........................................ 26
9.3 INDIAN VENDORS REPRESENT A VIABLE OPTION.................................... 27
VENDOR PROFILES .................................................................................................. 28
9.3.1 TCS. ................................................................................................................. 28
9.3.2 Wipro. .............................................................................................................. 33
9.3.3 Infosys Technologies ....................................................................................... 37
9.3.4 HCL Technologies. .......................................................................................... 41
9.4 Latest figures disclosed during Jan-Apr 2007 ........................................................ 43
10. Methodology ............................................................................................................... 44
11 References.................................................................................................................... 45
5

6. 5. Introduction
The scope of this project aims to understand a new trend in the field of IT Infrastructure
Management called Remote IT Infrastructure Management, which usually caters to the
needs of large organisations having a Global Presence, by managing their IT
Infrastructure remotely.
Infrastructure Management Services encompasses a broad range of services. It refers to
monitoring and management which includes maintenance, administration,
troubleshooting, and performance enhancement of the IT Infrastructure of any
organization. It covers the entire spectrum of the IT Infrastructure including helpdesk,
End User Desktops, sever and storage, databases, telecoms, Network, Security,
Application Operations et al.
Infrastructure Management Services is not a new phenomenon, for several years,
companies have been working hard to reduce the cost of operating the IT Infrastructure –
Datacenters, networks, databases, and business support software tools. The customers
who were early adopters of IMS were driven by the need to focus on their core
competencies and give away the non core functions to service providers. This was the
genesis of some early service providers like EDS, IBM etc.
Outsourcing to India can be categorized in the following manner:
Infrastructure outsourcing representing almost 1/3rd of the total outsourcing market.
Estimated worldwide outsourcing market size
2005; Percentage
100% = ~US$328 billion
0.5 Application Development
and Maintenance1
0.4 Business Process 43% Infrastructure
Outsourcing Outsourcing
0.3 33%
0.2 24%
0.1
0
IT Infrastructure IT ADM G&A outsourcing
6

7. 5.1: Approach to Assignment:
The first stage of the assignment, involving the design of a road map for the
planned research project was executed primarily through interactions with key
people at HCL Technologies, one of India’s Premier IT Services Provider.
• Identify the key objectives of their Infrastructure Services Division.
• Determine the main functions, structure of the and its branches/ units.
• Assess the current state of ICT infrastructure services scenario in India.
Secondary research was conducted to identify the best practices used in a similar
context elsewhere – domestic. HCL’s proprietary knowledge base and experience
gained through many years of involvement in complex organisation wide
operations effectiveness initiatives with various organisations across the globe
were leveraged to identify the prevalent practices in similar organisations and in
HCL itself.
The inputs obtained from these consultations and researches were used as the
basis for arriving at the recommendations on the road map for the proposed
Research Project to be submitted in complete fulfillment of the requirements for
PGDBM (P/T) at IMT, Ghaziabad .
7

8. 6. REMOTE INFRASTRUCTURE MANAGEMENT
Remote Infrastructure Management services consist of remote (outside the physical
premises of a company’s facilities) monitoring and managing the infrastructure
components and taking proactive steps and remedial actions across the IT landscape. The
remote monitoring and management is undertaken through a combination of
offshore/nearshore/global delivery center which is often termed as an Offshore
Management Center (OMC), where skilled staff of a service provider monitor and
manage the infrastructure, ensuring uptimes and availability.
Some of Infrastructure management services that can be delivered remotely are Network
Management Services, Datacenter Outsourcing, Helpdesk outsourcing, Desktop
Outsourcing, Storage outsourcing, IT Security Outsourcing, LAN outsourcing, WAN
outsourcing, Database and Application Monitoring & Management.
6.1: Evolution of RIM
Gartner Inc., a business intelligence firm, had indicated in its research that around 32% of
a CIO’s IT budget was spent on internal resources to monitor and manage IT. This area,
being a significant chunk, was also the area that required immediate decline.
Once IMS outsourcing became a norm, RIM followed as a natural progression, offering
an alternate model of delivery. Some of the key factors that have acted as a catalyst for
the RIM being accepted worldwide are:
6.1.1: Maturity of the offshoring (Global Delivery) model:
As companies face continued pressure to cut costs, they have started including
infrastructure-related opportunities in their offshoring requirements. This also allows the
customer to gain from the scale of operation as is evident from the various multi service
deals that have been won by India based Service Providers. ABN Amro deal with Wipro
being the biggest.
8

9. 6.1.2: Technical feasibility:
The myth that a IMS outsourcing is associated and bundled with the physical assets of the
IT department and the Datacenter and therefore precludes offshore delivery has been
broken. It is estimated that between 60-70% of the IT services surrounding the
datacenter, specifically the support functions of monitoring and management can be
executed remotely due to the improvements in the remote-monitoring and diagnostic
capabilities of leading System and Network management tools.
Reasons like emergence of Business Continuity Services, globalization, increased
awareness of RIM market and availability of low cost countries is forcing buyers to think
of new ways to service users 24x7 across the globe while increasing efficiency and
effectiveness. Moreover organisations are opting for RIM due to advanced security
technologies to mitigate risk due to offshoring. But foremost, Indian companies striving
to move beyond application services and repeat their success in new
opportunities/markets like RIM.
6.2: The Existing Scenario
With the advancement in processes and tools and the proven maturity of Global Delivery
for IT Infrastructure Services, today RIM is becoming a strategy of choice for CIOs
across the globe who are keen to take advantage of the labor arbitrage without
compromising on quality and responsiveness of services.
Today, Offshore vendors have started to invest aggressively both in infrastructure talent
and highly available network connectivity globally. At the same time, automation tools,
more effective processes, and onshore consolidation efforts have made corporate IT
departments increasingly comfortable with locating more of their infrastructure
support personnel remotely from assets and users.
9

10. Infrastructure Outsourcing market: Representing All Players
2005; Percentage
100% = US$109 billion
RIMO 1%
24%
IMS
75%
Traditional IO
6.2.1: Remote Infrastructure Management Services
Desk Management
Call Management
Escalation Management
Change Management
Email And Tele Support
Hardware/System Maintenance
Troubleshooting
Health Checks
Performance Fine Tuning
10

11. Other Features That Are A Part Of RIM Are
System Administration
Software Installation
Configuration And Maintenance
Security remediation
Backups/Restores
Network Monitoring And Management
Basic Reporting
Advanced Services And Intrusion Detection Services
Database Management
Performance Analysis
Bench Marking And Testing
Data Back-up Management
Managed Information Security Services
Policy Management
Asset Management
Capacity Planning
Vendor Management Services
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12. 6.3 Why Remote Infrastructure Management:
• Remote Infrastructure Management Services (RIM) is evolving at quick pace.
According to IDC, in a study, estimated that more than 85% of infrastructure
components can be managed from remote locations.
• Service providers are doing big ticket investments to develop their delivery
capabilities.
• In next 2-3 years large clients will be expected to deliver remote infrastructure
delivery service as a requirement in the majority of new outsourcing deals
• Infrastructure services delivered in a global delivery model from India to US
companies will surpass $1 billion.
• RIM presently contains high risk for global delivery of services. But clients
are relying on service providers to help manage and insulate them from risks.
• High probability that in next 5 years 50% of the labor hours for global IT
infrastructure service delivery will shift from on-site support to remote
delivery.
• Increased globalization of organisation hence need for 24X 7 Services.
• Low cost geographies like Indian with robust Infrastructure and Human
Capital capabilities.
• Advanced Security Technologies to mitigate risk due to offshoring.
• Pro-active management by means of enterprise management tools.
• Emergence of Business Continuity services.
• Need for repeatable, replicable service based on ITIL Model.
(ITIL: IT Information Library)
12

13. 6.4 Growth Aspects:
IMO market shares3
Percentage
US$460 US$720
100% M1 M2
100%=~US$26 billion =
Infrastructure Management
Others 19% 18%
Outsourcing market
Microland 2% 3%
Patni 4% 3%
2005; Percentage
6%
3% Satyam 11%
Offshore 14%
Traditional suppliers (RIMO Infosys 13%
suppliers 97% model1)
(IMS model) 16%
HCL 14%
TCS 17% 19%
Wipro 20% 21%
Representing local (offshore) players. FY 2004 FY 2005
Infrastructure Management Outsourcing market
2010; percentage
Traditional suppliers (IMS model)
Offshore suppliers (RIMO model)
100% 80%
80%
60%
40%
20%
20%
0%
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14. Current annual Growth Rate comparing Total Outsourcing
Traditional suppliers (IMS model)
Offshore suppliers (RIM model)
46
10% CAGR
41
36 8.6 61%
32 5.9
29 3.7
Suppliers and Remote Suppliers.
26 27 2.3
1.4
0.5 0.8
35 37 7% CAGR
30 32
26 28
25
2004 2005 2006 2007 2008 2009 2010
RIMO market growth
US$ billion
8.6
5.9
~60%
3.7
2.3
1.4
0.8
0.5
2004 2005 2006 2007 2008 2009 2010
14

15. 7. Sourcing Models Prevalent
Model 1: Global Outsourcing
Under this broadest outsourcing model, client companies effectively hand off the entire
IT department to the service provider. In this case, most firms retain only a reduced IT
management organization. Nowadays, this approach has become increasingly
uncommon. Some companies in the US and the UK, in particular, opt for this model, but
their Continental European counterparts rarely go down this path. The approach only
makes sense when the client company already has a global outsourcing strategy, not only
for IT, but also for other activities. In some cases, the client company and the service
provider create a joint venture that hosts the former IT department. The two most
common brakes are depending on a single service provider and lack of experience or
confidence in creating a joint venture. Global outsourcing should be aligned with the
buyer company’s strategy: It makes sense when the enterprise — looking beyond just IT
— massively outsources all noncore-business activities and very specialized processes. A
proportion of such deals rely on the client and service provider forming a joint venture to
ease asset and staff transfer and limit potential regulatory issues.
Model 2: Infrastructure Outsourcing
Rather than opt for global outsourcing, many companies have found it easier to isolate
and outsource only their IT infrastructure. Workplace management (desktop and laptop
management) is usually subject to a separate contract, either with the same or with a
different services firm. In the meantime, they retain their applications under in-house
management. As for global outsourcing, this approach requires specific preparation for
the staff transfer when the relationship first begins, and the joint venture approach crops
up frequently to ease asset and staff transfer. Separating infrastructure and applications
requires stable and well-defined processes supporting interfaces between infrastructure
management and application management.
Model 3: Vertical Outsourcing
This model involves outsourcing a vertical stack of technology elements devoted to a
specific activity within the client company. Workplace management can be one of these
vertical activities. When they separate systems in this way, companies can also consider
15

16. outsourcing the associated business process — as in business process outsourcing (BPO).
This is the business of specialists (payroll management, logistics, check processing,
call/support centers, etc). The success of this model is related to BPO growth — which
differs dramatically between the US/UK and Continental Europe. The typical
relationship involves significant staff transfer to the service provider.
Model 4: Best-Of-Breed Selective Outsourcing
Selective outsourcing currently dominates the market. Many companies expect better
results when they select the best service partner within each specific service category.
These companies customarily separate: hardware and operating systems (mainframes,
servers and Unix, servers and Windows); the main middleware categories (like security
management, storage management, collaborative tools and messaging, and integration
tools); and application categories (generally vertically). Some companies fragment even
further: They establish a separate outsourcing relationship for each of the following
domains according to the expertise of the provider: system management (hardware and
operating system) and hardware maintenance; application testing, maintenance, and
operations; and middleware customization, management, and operations. Integrating
services in this case requires a solid management effort, with a significant internal team.
A few companies outsource this service integration task to one of the outsourcing
providers or an external consulting firm. Eg, ING has retained Accenture to lead several
other service providers in a workplace services environment. Companies that opt for the
selective sourcing approach must have the right evaluation criteria to effectively select
best-of-breed vendors, domain by domain.
Model 5: Combined Infrastructure And Vertical Applications
In this model, companies select a single service provider for infrastructure management
— or two when workplace management is separated — and several specialists for
application management, while retaining some applications under in-house management.
Without suffering the complexities of the best-of-breed approach, companies can select
key partners for vertical domains. Also, many companies that opt for this model keep
some strategic applications internal, for example R&D and CAD/CAM software in the
aerospace and automotive industry, or financial asset management in the banking
16

17. industry. In this model, the ability of service providers to work together, and the ability of
the client to control them, remains a challenge
Model 6: Horizontal Outsourcing
In this model, companies select a single service provider for application management
(developing, maintaining, and running applications) and another one for infrastructure
management — two if the workplace management is separated. This situation is often a
second phase after infrastructure outsourcing (Model 2). Some people consider this
model a variant of Model 5, pushed to the extreme. This strategy requires selecting the
rare services firm that is able to cover all the vertical specificities of the client. However,
some service providers have built application centers able to deliver all the applications
services, backed up by expertise centers.6 The main challenge of this model is the ability
of the two service providers (handling infrastructure and apps, respectively) to work
together, with limited client arbitrage. Few outsourcing clients currently pursue this
approach.
17

18. 8. RIM – The India Advantage
Manpower:
India has highly skilled labour pool which has ability to cater to global clientele. India
has witnessed a healthy growth in the number of its IT professionals. From a base of
6,800 knowledge workers in 1985-86, the number is projected to increase to 650,000 IT
software and services professionals by March 2003. It is estimated that out of the 650,000
knowledge workers, almost 205,000 are working in the IT software and services export
industry; nearly 160,000 are working in IT enabled services 25,000 in the domestic
software market and over 260,000 in user organizations.
Location :
Low cost, easy accessibility of India as a location and emerging centers of excellence
with multiple cosmopolitan cities is another very significant pull factor for India as a
destination of choice.
Infrastructure:
The Indian telecom industry is one of the fastest growing industries. With the entry of
global players there has been tremendous infusion of capital and creation of best of breed
infrastructure. India’s capability, experience and depth in this space has challenged the
traditional IT service providers across and range of services.
8.1 RIM – Beyond a niche IT space: a great career opportunity
One of the important drivers that make RIM an attractive career is the exciting and
challenging environment it offers to professionals.
A career in the Remote Infrastructure Industry also offers a continuous learning curve to
its practitioners. Being responsible for 24X7X365 monitoring and management of IT
Infrastructures of global enterprises RIM experts have to consistently upgrade their
knowledge and grasp of new technologies entering the IT Infra space. Our employees
have to keep themselves abreast of the new as well as legacy technologies, thus ensuring
a continuous process of learning and growth inside the system.
18

19. Further, it gives a graduate engineer an opportunity to earn anywhere between 5-7 lakhs
after a reasonable level of experience and grow to the level of a Manager or Consultant in
a very short span of 5 years through focused growth programs. For experienced
professionals, the compensation is even more attractive and the growth opportunities
include leading worldwide Projects and Technology practices.
There are many such unique aspects of this Industry which translates into a ‘hot’ career
aspect for IT professionals.
Benefits
Cost reduction has been a driver for decades in the IT infrastructure space as CIOs
around the world continue to face increasing user demands and shrinking budgets. The
challenge is to evolve an IT infrastructure management strategy that leverages existing
investments, with increased service levels for end-users, improved end-user response
time through proactive management, and increased flexibility at reduced costs.
But there are benefits beyond costs that RIM brings.
Increased customer satisfaction:
• Shift from reactive to proactive management through increased automation and
reduced human intervention.
• Measurable metrics to track service levels
• Real time control and visibility into the operations through reporting portals
Risk Mitigation:
• People independent operations
• Focus on creating DR Operation Centers and processes that ensure business
continuity
Increase coverage to 24x7:
• Clients seek 24X7 Follow-The-Sun Model coverage and global footprint
Shift from Technology to Business Optimization
• To support customers’ transformational objectives
19

20. Reduce IT budgets hence impacting the bottom-line
• Concerns regarding enhancing service levels with no increase in IT Budgets
Flexibility
• Through the Co-Sourcing model, enterprises have an option of outsourcing a specific
function, several functions or entering the engagement in phases. This provides
clients greater scalability and cost predictability making companies more agile.
Quality and Process edge
• Quality technology, people and processes defined by ITIL (IT Infrastructure Library),
which ensures faster problem resolution. In addition to these standards, a known
knowledge base of errors and standard operating processes provide continuous
learning and ensure that the problems get the attention of the right expert,
Domain expertise and dedicated skill-set
• A good RIM service provider gives the customers access to experts on a 24X7 basis.
Moreover, these specialists are constantly updated with the latest technology trends
and the customer benefits from this “expertise on tap”
Visibility and Control:
• Through collaborative sourcing the customer retains control of its strategic
components such as physical IT assets, technology refresh, policy and architecture
which provides visibility into the availability, performance and utilization of each
component. This visibility further enables them to take control of the situation, make
informed decisions on future investments in IT, and improve current service levels.
SLAs and Best Practices
• RIM works under tough, black and white and precise service level agreements, with
penalties on Non-Compliance and downtimes.
These value propositions result to two distinct demands of customers:
1. Cost Reduction (30%-40% app)
2. Optimization that leads to transformation
20

21. 8.2 The Road Ahead
More and more global enterprises are seeking transformational benefits like those being
provided by vendors like HCL from their existing outsourcing partners. Also, the sheer
number of such offshoring deals will see a rise with a number of large engagements
coming up for renewal in the next 2 years.
RIM Adoption Scenarios:
RIM market adoption can follow several scenarios, ranging from pure labor arbitrage to
enabler of the enterprise IT transformation and provider of transparency into IT
infrastructure.
RIM can continue growing based purely on a labor-arbitrage business
model similar to Application Development and Maintenance (ADM)
Outsourcing.
RIM can become an enabler of the enterprise IT transformation through
IMO suppliers expanding their capabilities into the consulting part of the
IT transformation business.
Several factors are likely to attract buyers to consider RIM as an
alternative to full-scale Infrastructure Outsourcing including lower
degree of misalignment of supplier incentives around cost-cutting
and asset- reductions, ability to retain IT assets still enjoying the
advantage of productivity improvement and labor arbitrage, and
better applicability of IMO model to support new and emerging
technologies due to non-asset-oriented nature
Both offshore and traditional suppliers realize the opportunity and
actively invest in missing pieces of the puzzle by ramping up their
efforts and capabilities
21

22. IMO suppliers can leverage their knowledge of buyers’ operations and cross capabilities
to offer business users additional value from transparency into IT infrastructure
Linkage of business and IT is complicated by the presence of two
disconnects:
disconnect between business process and supporting IT systems
leading to unnecessary complexity in conducting business tasks
disconnect between business and IT workloads leading to lack of
understanding of IT efforts and costs by the business
The technical solutions to these disconnects are emerging in the
form of Service-Oriented Architecture (SOA) and multiple IT
transparency frameworks (e.g., IT Service Catalog)
By taking on monitoring and remote-management functions, IMO
suppliers can learn a great deal about the buyer’s infrastructure and
become well-positioned to tackle the business/IT transparency
challenge
22

23. 9.Competitor Tracking
Indian Market Scenario
Major players in the Indian Market targeting the top companies in EMEA, APAC, and
the US are also the top players in IT in India.
Infosys
Wipro Technologies
TCS
HCL Technologies
These 4 players provide a range of offerings in IT Infrastructure Management and
are categorized based on their service offerings in the Europe Market.
While outsourcing across Europe has become an accepted approach for helping
companies reduce their infrastructure management costs, European clients have begun,
over the past 18 months, to warm to the idea of moving selected infrastructure
management tasks to offshore or nearshore locations. The underlying aim is clear: By
adding the offshore labor arbitrage to the equation, clients are hoping to reap further cost
benefits from infrastructure outsourcing. During recent months, the two types of service
providers — large, traditional on-site outsourcers and Indian offshore service
providers — have been busy ramping up their remote infrastructure management
resources and capabilities.
Encouraged by the early successes of their remote infrastructure service offerings across
North America, Indian vendors are now setting their sights on Europe. To achieve rapid
growth in what still constitutes an emerging market, Indian service providers have made
significant investments in the necessary resources and capabilities; this makes
transitioning selected infrastructure management tasks to their control a sound and viable
proposition.
23

24. Physical infrastructure management resources have been established.
Indian offshore providers have invested heavily in their data centers, network operation
centers (NOCs), as well as training centers for infrastructure management staff. Most of
the data centers and NOCs today use state-of-the art equipment and are linked to highly
redundant and reliable telecommunication networks.
Remote management capabilities have evolved.
The great majority of the Indian vendors have established strong ties with the leading
systems management tool vendors to leverage the latest versions of their remote
management technologies. In addition, most Indian providers have invested in
complementary reporting tools and dashboards to enhance the transparency of their
service delivery.
Infrastructure delivery expertise has matured.
Most of the leading Indian vendors have become fairly proficient in infrastructure
services delivery and are seeking ways to optimize operations in the same way that they
optimize applications. To this end and to develop credibility and capability, they have
made significant investments in resources and processes around the IT Infrastructure
Library (ITIL) and the BS 15000 IT Service Management Standard. Furthermore, some
companies are leveraging Six Sigma to drive continuous improvement of their end-to-end
service delivery
Local support and recovery functions are being set up.
All of the Indian service providers today recognize the critical need to maintain a strong
local delivery and customer management presence across Europe. Most companies,
therefore, have invested in additional local language support and operation centers,
mainly across Eastern Europe. In addition, most vendors will provide on-site support
services through their own personnel or through dedicated local partners.
European firms continue to grow their use of offshore outsourcing as an effective way
to achieve cost savings and build successful IT operations. While application services
like custom development and software maintenance are currently the main source of
revenues for offshore providers today, European end users have started to show
24

25. significant interest in remote infrastructure services over the past 18 months.
Nevertheless, Forrester does not foresee European companies rushing into large offshore
infrastructure engagements with Indian vendors, but expects them to apply a more
cautious step-by-step approach. As a result, many European clients will be:
Testing the water via on-site infrastructure consulting engagements.
Many European companies will start using Indian vendors to help them with smaller
consulting projects related to their existing infrastructure operations. These engagements
will, for example, provide assessments of the client’s existing infrastructure management
processes and contrast them with a best practices view based on the operational service
management expertise that Indian vendors can provide.
Initially outsourcing small selected remote management tasks.
Clients will initially look to outsource confined monitoring and management tasks for
desktops, servers, mainframes, and network components in limited numbers to Indian
vendors. As part of their selective outsourcing strategies, most clients will thereby
separate the remote management from the physical maintenance of the devices, which is
likely to remain with local providers.
Showing caution around outsourcing help desk operations.
While theoretically well suited for offshore delivery, European clients will be extremely
cautious about outsourcing help desk operations to Indian providers. Unless they can be
convinced that the vendor in question offers very good local language skills to support
their end users, most companies will want to avoid any potential cultural or language
issues.
Not transferring staff to Indian vendors.
Although some Indian providers have successfully taken over limited numbers of staff
from their European clients in the past, most companies will refrain from transferring
employees to Indian vendors. The perceived cultural integration issues will present too
much of an obstacle.
25

26. 9.1 Global Delivery Infrastructure Management Evaluation
OVERVIEW
To assess the state of the global delivery infrastructure management market for Europe
and see how the Indian service providers stack up against each other, the strengths and
weaknesses of top Indian vendors are evaluated.
Current offering.
As a framework for the evaluation we looked at various service elements —
the underlying breadth of service offerings, security and disaster recovery capabilities, as
well as offerings pertaining to consolidation, virtualization, and service management.
Furthermore, we looked at delivery capabilities from both the operational and support
perspective of the global delivery model, as well as network bandwidth and redundance.
Finally, with regard to languages, on-site and nearshore support, as well as compliance
with the European data protection directive are assessed.
Strategy.
Comparing the RIM service strategies of each company with a vision to assess how well
each vendor is positioned for future success, a focus on the vendors’ underlying
infrastructure vision and productivity investments, their commitment to adaptive sourcing
and partnerships, as well as their asset and staff transfer strategies is done.
Market presence.
European remote infrastructure revenues and underlying revenue growth, the number and
typical profile of accounts across Europe that use offshore or nearshore resources, and the
number of desktops, servers, mainframes and network devices managed in Europe from
an offshore or nearshore location are compared.
26

27. 9.3 INDIAN VENDORS REPRESENT A VIABLE OPTION
HCL, TCS, Wipro, and Infosys lead the pack.
HCL differentiates based on its deep infrastructure management expertise and innovative
services strategy, while TCS maintains the broadest infrastructure management portfolio,
with significant resources dedicated to Europe. Wipro has the strongest European market
presence today and has already started to push beyond pure remote outsourcing.
Meanwhile, Infosys is building up some strong growth momentum thanks to its
sophisticated business-centric delivery approach.
Genpact, Satyam, and Patni offer competitive options.
Genpact is a strong performer with high-quality delivery processes and a sizable
European presence. Satyam benefits from its holistic services approach across
infrastructure, applications, and business processes, although the company still lacks a
European presence. Finally, Patni positions itself for broader infrastructure and
application deals, but needs to grow its European market footprint.
27

28. VENDOR PROFILES
Leaders
9.3.1 TCS.
TCS offers the broadest portfolio of infrastructure-related services across the plan-
buildrun value chain, with telecom infrastructure management tagged on as an added
bonus. The company maintains strong technical domain knowledge and a good ability to
support diverse technical domains. European clients will benefit from TCS’ strong local
presence, with various nearshore and onsite support centers providing multilingual
support as well as local disaster recovery.
About:
One of India's largest and most respected business conglomerates, Tata Consultancy
Services in 2005-06 had groups revenues of $21.9 billion (Rs. 967,229 million),
equivalent of about 2.8 per cent of the country's GDP, and a market capitalization of
$51.3 billion. The Tatas together employ some 202,712 people.
The Group's 28 publicly listed enterprises have a combined market capitalization that is
the highest among Indian business houses in the private sector, and a shareholder base of
over 2 million. The Tata Group has operations in more than 54 countries across six
continents, and its companies export products and services to 120 nations.
The Tata Group comprises 96 operating companies in seven business sectors
Information systems & communications
Engineering
Materials
Services
Energy
Chemicals
Consumer Products
28

29. Group financial performance and sector-wise
operations
Services
Material
9%
20%
Engineering
23% Energy
4%
5% Consumer Products
7%
Chemicals
32% Communications &
Information System
Tata Consultancy Services (TCS) is IT consulting, services and BPO organisation
offering services to clients across 55 countries, with a vision is to be a Global top 10 IT
services company by 2010. TCS has offices in 33 countries, over 35,000 consultants from
30 nationalities and more than 100,000 man years of experience, TCS offers a
comprehensive range of IT services to clients in diverse industries, such as BFSI,
manufacturing, telecommunications, retail, and transportation. Six of the top 10
corporations in the Fortune 500 list of the largest corporations in the United States are
among TCS' clients.
Service Offerings:
IT services: TCS offers ADM services over the entire IT application lifecycle, including
migration and reengineering, e-commerce and internet services, testing services,
architecture and technology consulting, systems integration, as well as packaged software
implementation across multiple industry and technology domains.
29

30. IT infrastructure: The company offers services that include complete outsourcing of IT
networks, consulting and integration, hardware support and installation, and
infrastructure management.
Asset-based solutions: It utilizes its proprietary software assets to deliver solutions to
clients in specific industries and has licensed several software intellectual property rights.
It also develops and markets a variety of products across diverse industries.
Engineering & Industrial services: TCS offers a range of engineering services, embedded
software and R&D services to diverse clients, assisting in new product development and
product lifecycle management through services
Consulting: One of the first companies to set up an independent consulting division, TCS
today includes consulting as an integrated part of any assignment to its customers in
different industry segments.
BPO: TCS offers a variety of transaction-based IT-enabled services. These include
inbound call centers, back office support, engineering services and database services
Human Resource:
Employees
7000 83500
70
60
50
40
30
20
10
0
1996 2006(3Q)
30

31. IT Infrastructure Services
TCS
IT Infrastructure Services
Remedy Centers Infr SLA Share
Managed of
Services Excellenc astr Base d
e uctu d Servi
re Soluti ce
Solu on Model
tion
Cent
ers
ITIL Six Tools Alliances TMM
Framework Sigma
Infrastructure Offerings:
Technical Help Desk Services
Desktop Services
Data Center Services
Enterprise System Management (ESM)
Network Management Services
Managed Storage Services
Database Services
ITIL Process Consulting
31

32. SWOT Analysis:
Strengths:
• TCS have strong mainframe capabilities
• TCS is capable in performing infrastructure management work that is commonly
bundled with application management like production systems support, database
management, and server monitoring.
• TCS has six offshore infrastructure delivery centers located in Hyderabad, Chennai,
Mumbai, Delhi, Calcutta, and Bangalore.
• TCS has broad technical capabilities across AS 400, mainframe, Wintel, and Unix
devices.
Weaknesses:
• TCS has one ITIL certified staff
• TCS does not have any DRII- or BCI-certified consultants on staff.
• TCS has only one nearshore infrastructure delivery center located in Budapest,
Hungary.
• TCS has weak asset transfer strategy
• Weak presence in Global delivery management
• Weak help desk threatens to invite new clients
Opportunities:
• Affiliation with the greater Tata Group also allows it to leverage existing European
group resources to offer further depth and greater presence across Europe.
• On-demand service and subscription-based services.
• Local resource network ensures that European clients get the local flavor of services
they might require.
• Telecom infrastructure management.
32

33. • Mainframe management capabilities will give opportunity to TCS to go for large
infrastructure deals and hosting biz
Threats: Paucity of certified staff to support the security and disaster recovery offerings
may become threat in long term for its expansion program in Europe to support mission-
critical work.
9.3.2 Wipro.
Of all the Indian vendors, Wipro maintains the strongest European client base for
offshore infrastructure services today. The company is actively pushing beyond pure
remote infrastructure management and has recently begun to successfully compete head
to head against traditional on-site outsourcers for larger end-to-end infrastructure
outsourcing deals.
The company operates through five principal business segments.
• Global IT Services and Products
• Lighting and Health Science
• Consumer Care
• India and Asia-Pac IT Services and Products
• IT Enabled Services
Wipro Technologies is the global technology and consulting services division of Indian
conglomerate Wipro Limited. It is leading provider of integrated business, process, and
technology services. A leading global independent R&D services provider, the firm
offers such services as application development, enterprise systems implementation,
networking, systems integration, and technology consulting services. It also provides
with offshore business process outsourcing (BPO) services. With operations in about 35
countries, Wipro Technologies has been growing rapidly due to number of companies,
particularly in the US, looking to reduce costs through outsourcing various business
functions. The global technology services division constitutes the majority of Wipro's
business, accounting for about 75% of its revenue and almost 90% of its operating
income.
33

34. Service offerings:
Application Development & Learning Solutions
Maintenance Legacy Migration
Application Performance Multimedia
Management & Support Package Implementation
B2E PLM
BPM Product Support
Broadband Process Consulting
BPO Space Communications
Business Intelligence SCM
Business Consulting System Integration
CRM Technology Consulting
Data Warehousing Network Management
e-Business Testing Services
Enterprise Application Optical Networks
Services Quality Consulting
Enterprise Security System Design
e-procurement & B2B Voice Networks
ERP Web Services
Home Gateway Wireless Networks
IEEE 1394 Wireless LAN
Infrastructure Solutions
Industrial Automation
Wipro’s Global IT Revenue pie
Custom App Dev &
Maintenance, 23%
R&D services, 37% Consulting , 1%
Infrastructure
Outsourcing, 9%
ITES & BPO, 9% Package
Implementation+Te
sting + System
Integration, 21%
34

35. IT Infrastructure Services
Infrastructure Management
Systems Integration
Data Centers
Netwo rks
Servers &
Mainframe DBA Services
services
Telecom Desktop
Network Management
Security
Services Messaging
services
Consulting
SWOT Analysis
Strengths
• A broad portfolio of infrastructure related offerings
• Strong European support functions
• Strong European client base for offshore infrastructure services.
• Strong Acquisition strategy
• Strong Delivery capabilities through its offshore centers in India and Europe.
• Strong R&D services and infrastructure management.
• Provides Multi lingual Support
• Wipro services can be unbundled or provided as point offerings
• Control over Attrition rate
• Competing with existing outsourcing competitors at the recompete stage of the deal.
35

36. Weaknesses
• Wipro does not have any help desk agents located in nearshore geographies.Wide
infrastructure offerings will negatively impact Wipro’s ability to differentiate in the
long term.
• It has to increasingly develop its nearshore centers, especially for help desk
management in Europe.
• Relentlessly focus on costs and process rather than value
Opportunities
• Developing transition methodologies to ease this process from a customer perspective
and is also exposing the cost savings associated with taking a high proportion of work
to an offshore location.
• Looking at asset transfer in EU this will take Wipro into big league
• Needs to evaluate options for nonlinear growth, such as an IP-based solution
framework.
• Hand held devices will be the key areas where Wipro will be foraying into
• Address SMB markets: Companies interested in adaptive provisioning and pricing
models.
Threats
• The company is in danger of spreading itself across too many different services
domains simultaneously.
• Wipro has to develop a strategy beyond labor arbitrage if it is to compete in the
infrastructure market vis-a-vis the incumbent providers.
• Wipro lacks the experience in taking over assets and needs to show savings from
performing this work.
36

37. 9.3.3 Infosys Technologies
Although a late entrant into this market, Infosys is building up some strong momentum
thanks to its use of innovative business service management methodologies coupled with
modular, business-centric delivery processes. While faced with an initial struggle in
finding the right skills locally for fast implementation, Infosys has since invested
strategically in on-site and nearshore delivery options for Europe.
Infosys Technologies Ltd. provides consulting and IT services to clients globally - as
partners to conceptualize and realize technology driven business transformation
initiatives. With over 69,000 employees worldwide, we use a low-risk Global Delivery
Model (GDM) to accelerate schedules with a high degree of time and cost predictability.
Its Vision and Mission is to "To be a globally respected corporation that provides best-of-
breed business solutions, leveraging technology, delivered by best-in-class people." &
"To achieve our objectives in an environment of fairness, honesty, and courtesy towards
our clients, employees, vendors and society at large."
Service Offerings:
Application Development & Management:
Application Development, Application Maintenance, Application Re-engineering,
Application Portfolio Management, Platform Services.
Corporate Performance & Management
Balanced Scorecard, Corporate Strategic Planning, CPM Technology Implementation,
Data Architecture, Discovery and Solution Design, Integrated Management Processes
and Methods, Strategy Execution Framework, Technology Architecture & Design.
Enterprise Quality Services
Defect Prevention, Metrics Based Performance Management, Performance Testing,
Process Assessment, Process Training, QA Process Consultancy, Software Process
Capability Improvement, Test Automation, Testing Center of Excellence.
Infrastructure Services
37

38. Application Management, Datacenter Services, Desktop Services, Infrastructure & ITIL
Consulting, Mainframe Operations, Network Services, Service Desk.
Packaged Application Services
CRM, Enterprise Application Integration (EAI), ERP, HCM, SCM.
Product Engineering Services
Additional Product Services, Offshore Product Development Center, Product Consulting
and Professional Services, Product Design & Development, Product Lifecycle
Management, Product Sustenance, Testing & Automation, Systems Integration.
System Integration
Architecture Services, Business Intelligence and Data Warehousing, Enterprise Content
Management, Enterprise Information Portal, Enterprise Mobility, Enterprise Security,
Identity Management Migration and Re-hosting, Performance Engineering &
Enhancement (PE2).
Revenue by Services
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Re- Package Engineer Busines
Develop Maintena Consulti Other
engineer Impleme Testing ing s Products
ment nce ng Services
ing ntation Services Process
31-Dec-06 20.1% 29.8% 2.1% 17.9% 3.3% 7.0% 1.5% 4.9% 9.1% 4.3%
30-Sep-06 21.4% 29.2% 2.3% 17.0% 3.6% 6.8% 1.6% 4.5% 9.9% 3.7%
30-Jun-06 21.3% 29.9% 2.6% 16.5% 3.0% 6.2% 1.8% 4.2% 10.8% 3.7%
31-Mar-06 20.1% 30.8% 4.3% 17.1% 3.2% 5.6% 1.9% 4.0% 9.8% 3.2%
38

39. Infrastructure Services:
SWOT Analysis
Strengths
• Highly adaptable to clients demands by virtue of its size
• Its overall offshore infrastructure management capabilities stand out for their high
process maturity
• R&D is strong focus area. 82 invention disclosures and 20 patents applications in 2006.
• Strong strategies for investment
• Strong capabilities in Wintel, Unix, and network management and monitoring gives cost
benefits.
39

40. Weaknesses
• Lacking focus to align ISM with core business
• lacks the nearshore capabilities to provide clients with multi-country infrastructure
management support.
• Attrition rate, though low as per industry, but is going up
• Cannot get HR for infrastructure management
• High training cost
• Weak onsite support
Opportunities
• Vendors are eager to partner with Infosys.
• Will find opportunity in bundling application and infrastructure management
• Focusing on European market.
• Presence in World Economic Forum and the Bill Clinton Foundation work out as a
opportunities to network with Fortune 500 business leaders.
• Strategies like MD and Chairman on the boards of other companies helps Infosys to
open doors at a senior level with both clients and prospects.
Threats
• Weak security and disaster recovery capabilities and no certification will raise issue
in European countries
• No major experience in staff transfers
• Weak market presence
40

41. 9.3.4 HCL Technologies.
HCL has strong infrastructure management background and innovative services strategy. The
company has grown from being a pure-play IT operations supplier to an end-to-end service
provider capable of initiating and managing infrastructure transformation to help clients better
align with their business needs.
HCL is one of the leading global Technology and IT enterprises with annual revenues of US$
3.90 billion. The HCL Enterprise comprises two companies, HCL Technologies and HCL
Infosystems.
The 30 year old enterprise, founded in 1976, is one of India's original IT garage start ups. Its
range of offerings span R&D and Technology Services, Enterprise and Applications Consulting,
Remote Infrastructure Management, BPO services, IT Hardware, Systems Integration and
Distribution of Technology and Telecom products in India. The HCL team comprises 43,000
professionals of diverse nationalities, operating across 17 countries including 360 points of
presence in India. HCL has global partnerships with several leading Fortune 1000 firms,
including several IT and Technology majors.
Its Business Model and Service Offerings:
41

42. Infrastructure Services:
Services
Services Desk Incident Problem Change Configuration Release
Cisco Checkpoint Windows IIS Windows Oracle
EMC MS Exchange
Nortel ISS MAC I Planet UNIX SQL Server
Sun Lotus Notes
Cisco Sun Apache Linux IBM Custom Apps
Enterasys Sybase
Symantec Linux Web logic Midrange HP ERP/CRM
Avaya DB2
Trend Micro Web sphere Mainframes Hitachi
Net Forensics Dell
End User Data Network Security Application
Computin Operations
g
Centre
Process &
Tool Consultancy
RIM Service Offerings – By Indian Vendors.
Service System Network SecurityDesktopE-mail ERP Database MainframeWintel Unix Help
Provider
MonitoringMonitoring SupportSupportOperations Administration.Support SupportSupportDesk
Support
Wipro
TCS
HCL
Infosys
High Provided to 10 or more customers
Medium Available and provided to 1 to 10 customers
Low Under development or not a stand-alone service option
42

43. 9.4 Latest figures disclosed during Jan-Apr 2007
US$ Mn
2004 2005 2006-07 2006-07 2006-07
Q1 Q2 Q3
Wipro 92 200 51 60 85.6
TCS 78.2 136.8 61.21 58.52 60.39
HCL 64.4 115.2 34 40 46.4
Infosys 59.8 100.8 Discloses at Year end
Satyam 50.6 43.2 16.74 18.3 20
#Others 115 172.8
AMJ
05 to JAS 05 JFM 06
JAS to OND OND 05 to AMJ
% QOQ 05 05 JFM 06 06 AMJ 06 to JAS 06
TCS 7.08 6.82 9.13 7.65 8.21
Infosys 10.08 6.68 6.08 11.30 13.03
HCL 3.24 5.88 7.69 7.94 10.29
Wipro 8.31 11.40 7.52 3.69 10.67
Satyam 8.54 5.24 6.76 7.33 9.32
Cognizant 11.24 9.09 11.13 17.97
19
17
15
13
11
9
7
5
3
JAS 05 to
AMJ 05 to JAS
AMJ 06 to JAS
OND 05 JFM
JFM 06 to AMJ
OND 05
06
06
06
05
TCS Infosys HCL Wipro Satyam Cognizant
43

44. 10. Methodology
Sample Characteristics Considered Within Each SWOT Category
(Representative of Types of Considerations)
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
Advantages of Accreditations Business and product Political effects
proposition development
Capabilities, resources, Competitive strength Demographic shifts Economy (home,
assets, people abroad)
Competitive Cost structure Gap in the Environmental effects
advantages market/whitespace
Organizational core Disadvantages of Geographical, export, Fiscal policy
competencies proposition import
USPs Distractions from core Insurmountable
Global influences
activity weaknesses
Resources, assets, Gaps in capabilities Industry or lifestyle
IT developments
people trends
Organizational structure Known issues and Information and
vulnerabilities Legislative effects
research
Cost efficiencies and
cost structures Loss of key staff Market developments
Market demand
and trends
Experience, knowledge, Management cover, New markets, vertical,
New entrants
data succession horizontal
Financial reserves, Morale, commitment, New source of labor
New technologies,
likely returns leadership services, ideas
Cash flow, long-term
contracts
Brand and reputation Obsolete technology New USPs
Obstacles faced
Marketing reach, Organizational culture Niche target markets
Seasonality, weather
distribution,
effects
Awareness
Innovation Poor product and Non traditional partners
Substitute products and
marketing mix
services
Location and Processes and systems Partnerships, agencies,
Sustainable financial
geographical and so on distribution,
backing
channels
44

45. 11 References
Various references are taken at different levels of the research project which includes:
• Talking to concerned people in the corporate communications department at HCL
Technologies and Wipro Technologies and TCS.
• Articles published by consulting firms like Gartner, IDC, Butler, Forrester,
Everest etc.
• Interviews published in CIO Today, business week, Data Quest etc.
• Black Book launched by NASSCOMM
Websites like:
www.hcltech.com
www.hclisd.com
www.wipro.com
www.satyam.com
www.tcs.com
www.infosys.com
www.gartner.com
www.globalsourcing.com
www.outsourcingdatabase.com
45