While the overall IT Managed Services market continues to grow
rapidly in India — this space is witnessing the emergence of
specific niche areas within the IT managed services market.
Analysts are observing a trend where organizations are breaking up
their IT infrastructure management engagements into specific areas
and outsourcing them to vendors that specialize in handling a
specific function. Hot niche areas that are emerging in the managed
IT services space include Managed Print Services, Managed Security
Services and Managed Storage Services.
Perhaps, the most established niche is the Managed Print
Services (MPS) space, which is dominated by vendors such as HP,
Canon and Xerox. Reports by independent research and analyst firms
confirm this demand. A report by Forrester Research estimates that
the MPS market in Asia-Pacific (excluding Japan) will grow to USD 1
billion by 2012. The Indian market is expected to be the fastest
growing market in the region, with a CAGR of 22.6 percent.
Similarly, a report by the Photizo Group estimates that the managed
print services market in India is growing at CAGR of 51 percent,
and is expected to be worth Rs 1,530 crore in 2012.
While CIOs have traditionally looked at squeezing costs from
their IT infrastructure, printing is one function that has
traditionally been overlooked. Specialist players in this space are
evangelizing clients on the huge cost efficiencies that can be
gained by availing Managed Print Services. For example, pre- and
post-analysis of some of HP’s managed print services
customers’ imaging and printing operations reveal energy
savings ranging between 30 percent and 80 percent, and reductions
in paper consumption to the tune of millions of pages.
“Over the years,
organizations have realized that delegating their printing and
imaging portfolio will help them save 15-30 percent in cost,”
opines Shekhar Agrawal, Director - Managed Enterprise Solutions, HP
A similar opinion is shared by Vishal Awal, Executive Director -
Services, Xerox South Asia. He reveals that enterprises spend up to
2 percent of their revenues on running printers, copiers, scanners,
fax machines and other devices that are often energy inefficient.
“An office print optimization strategy can reduce this
expenditure by as much as 15-25 percent while also decreasing
energy consumed and waste generated. Additionally, employee
productivity can be enhanced due to efficient management of print
operations, and via innovative features like mobile and cloud-based
In India, there are several examples of firms that have shown
that MPS delivers proven ROI. For example, by outsourcing its
printing needs and management to Canon, mid-sized firm, MindTree,
achieved more than 50 percent decrease in paper consumption and 25
percent reduction in printing costs, as well as savings of over USD
62,000. Similarly, KPO firm, Evalueserve, has been able to save
approximately 40 percent of paper usage due to forced duplex
printing enabled by MPS. The firm has also managed to reduce the
number of printers from 54 to 25, as the new arrangement provides
the firm secure printing, which in turn allows the firm to share
printers between multiple groups. The new printers consume low
energy as compared to old printers, leading to 70 percent savings
on electricity costs.