Infosys seeks edge over competition with IPsoft tie-up
BANGALORE: Infosys has tied-up with New-York based IPsoft
in a decisive move that has the potential to drive revenue growth at
the Bangalore-based company which is under pressure to demonstrate
industry-matching performance.
The partnership with IPsoft, widely regarded as the IT industry's new benchmark in non-linear growth, is not an exclusive one for India's second-largest software exporter. But by virtue of being the first among Indian outsourcing companies to do so, the tieup will give Infosys a head-start on competition in infrastructure management, one of the fastest-growing service lines for the $76 billion (Rs 4.1 lakh crore) IT exports sector.
"We wanted to push the envelope on the automation front and IPsoft has a proven track record in the IT infrastructure maintenance and network management space," said Chandrashekar Kakal, senior vice-president and a member of the Bangalore-based company's executive council who heads business IT Services globally for Infosys. The partnership, which has been in the works for at least six months, will work on a revenue-sharing model.
For Infosys, infrastructure management services accounted for about $530 million, or about 7 per cent of its $7.4 billion sales in the year to March 31. Infosys' exposure to the infrastructure business is less than rivals such as HCL TechBSE 2.57 %, which gets around $1.26 billion or 28 per cent of its $4.5 billion sales from the service.
IPSoft, founded in 1998 by Chetan Dube, a former New York University mathematics professor, promises 30-40 per cent savings in typical infrastructure management costs. The company's self-learning, self-healing software platform is capable of providing basic infrastructure management support services with limited human intervention.
"Our commitment will be to deliver, in conjunction with Infosys, a certain level of automation and efficiency gains," said Dube, IPsoft's president and chief executive officer. "We will be training around 4,500 of Infosys personnel in Mysore."
Gartner estimates the global IT infrastructure management market to touch around $140 billion by 2015.
Besides the joint go-to-market advantage, the partnership will let Infosys migrate existing clients where IT infrastructure is being managed manually to the autonomous model of IPsoft, thereby being able to significantly reduce the number of engineers deployed to maintain such networks.
Infosys is also betting on extending IPsoft's platform's capability to other service areas to reduce human effort in managing routine and repetitive tasks in areas such as application maintenance and testing as well as business process outsourcing. Towards that end, Infosys and IPsoft is jointly setting up a centre of excellence in Mysore.
"There is a push to move towards a significant level of automation and become less people-dependent. Given that stark reality, it is inevitable that companies will have to move in that direction," said Siddarth Pai, partner and head of the Asia Pacific region at outsourcing advisory ISG. "Service providers with unfettered access to automation tools will be better placed competitively to cater to the emerging demand."
AMIT GUPTA
PGDM 2nd sem
The partnership with IPsoft, widely regarded as the IT industry's new benchmark in non-linear growth, is not an exclusive one for India's second-largest software exporter. But by virtue of being the first among Indian outsourcing companies to do so, the tieup will give Infosys a head-start on competition in infrastructure management, one of the fastest-growing service lines for the $76 billion (Rs 4.1 lakh crore) IT exports sector.
"We wanted to push the envelope on the automation front and IPsoft has a proven track record in the IT infrastructure maintenance and network management space," said Chandrashekar Kakal, senior vice-president and a member of the Bangalore-based company's executive council who heads business IT Services globally for Infosys. The partnership, which has been in the works for at least six months, will work on a revenue-sharing model.
For Infosys, infrastructure management services accounted for about $530 million, or about 7 per cent of its $7.4 billion sales in the year to March 31. Infosys' exposure to the infrastructure business is less than rivals such as HCL TechBSE 2.57 %, which gets around $1.26 billion or 28 per cent of its $4.5 billion sales from the service.
IPSoft, founded in 1998 by Chetan Dube, a former New York University mathematics professor, promises 30-40 per cent savings in typical infrastructure management costs. The company's self-learning, self-healing software platform is capable of providing basic infrastructure management support services with limited human intervention.
"Our commitment will be to deliver, in conjunction with Infosys, a certain level of automation and efficiency gains," said Dube, IPsoft's president and chief executive officer. "We will be training around 4,500 of Infosys personnel in Mysore."
Gartner estimates the global IT infrastructure management market to touch around $140 billion by 2015.
Besides the joint go-to-market advantage, the partnership will let Infosys migrate existing clients where IT infrastructure is being managed manually to the autonomous model of IPsoft, thereby being able to significantly reduce the number of engineers deployed to maintain such networks.
Infosys is also betting on extending IPsoft's platform's capability to other service areas to reduce human effort in managing routine and repetitive tasks in areas such as application maintenance and testing as well as business process outsourcing. Towards that end, Infosys and IPsoft is jointly setting up a centre of excellence in Mysore.
"There is a push to move towards a significant level of automation and become less people-dependent. Given that stark reality, it is inevitable that companies will have to move in that direction," said Siddarth Pai, partner and head of the Asia Pacific region at outsourcing advisory ISG. "Service providers with unfettered access to automation tools will be better placed competitively to cater to the emerging demand."
AMIT GUPTA
PGDM 2nd sem
Nice Blog , This is what I exactly Looking for , Keep sharing more blog .
ReplyDeleteInfrastructure Management Services