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Infra outsourcing gaining ground

With Infrastructure outsourcing gaining ground globally, the new services space of IMS and IVS offers tremendous potential.

india Updated: Feb 22, 2006 18:55 IST

With Infrastructure outsourcing gaining ground globally, the new services space of Infrastructure Management Services (IMS) and Independent Validation Services (IVS) offers tremendous potential, with 40 per cent of Infosys' revenue coming from these services.

"The overall market size for IMS is between $100-150 billion and the revenue from IMS (RIMS) is $55 billion. Revenues from Indian export-oriented offshore infrastructure management services stands at $450 million currently," Infosys Technologies Chief Operating Officer and Deputy Managing Director Kris Gopalakrishnan said.

"Infosys' revenue from IMS during the last quarter was $100 million. Eighty per cent of our IMS is offshore. With the growing demand, I see Indian companies doing a billion dollars next year," Infosys Technologies Head IMS Priti Rao told reporters during an overview of the trends in the new services space.

Infosys' through its IMS practice unit, started in 2001, offers IMS through an integrated set of processes and enabling technologies, designed to utilise a client's IT infrastructure as business assets.

"RIMS is an area of strategic business and high growth for Infosys. The overall trend in this space is that deals are becoming more modular with a focus on selective outsourcing like help desk, email and security/network," Gopalakrishnan said.

Revenues from IMS amount to 2.8 per cent of total revenues, with a majority coming from the USA, followed by Europe and Asia-Pacific, Rao said.

Infosys included in Gartner's Magic Quadrant report 2006

Infosys Technologies Ltd said on Wednesday that Gartner Inc has included the company in its Magic Quadrant report 2006 for 30 leading offshore application services providers.

The report titled "Magic Quadrant for Offshore Application Services 2006" depicts Gartner's analysis of companies from a specific technology or service market against criteria for that marketplace, the company informed the Bombay Stock Exchange.

The companies are evaluated by Gartner in terms of completeness of vision and ability to execute, it said.

"I am happy to see Infosys being recognized as a leader in this Offshore Application Services Magic Quadrant, the first time that Gartner has published one to focus on this area. This is an important indicator for the mainstream acceptance of GDM by clients," said Kris Gopalakrishnan, the Company's Chief Operating Officer and Deputy Managing Director.

Kris said the majority of Infosys' revenue in the last 12 months was derived from GDM - based application services.

Infosys through its IMS Academy provides a comprehensive induction and foundation training programme to develop competency and knowledge management, Rao said.

The IMS academy also offers lateral training and competency development programmes aimed at enhancing the growth of experienced individuals at the organisation.

The IMS practice unit services 70 clients spread across verticals including banking and capital markets, communication service providers, hi tech and discrete manufacturing, retail, energy, insurance, healthcare and transport.

The IMS ofg.

Independent Validation and Testing Services (IVS), is the other fastest growing service lines in the outsourced offshd specialised testing knowledge) and independent presence in this space has enabled it to move rapidly up the value chain," he said.

IVS, at Infosys, Ramu said involves rigorous validation methodologies and processes that reduce defects delivered to production.This is achieved through return on investment (ROI)-based verification and validation strategies and risk-based test effort optimisation.

The five-year old 2,500 strong IVS team has skills in three areas- Industry Knowledge, Testing Strategies and Usage of Tools from leading vendors including Mercury Interactive, Rational and Compuware, he said.

Infosys has also invested in developing proprietory accelerators that enhance the quality and productivity of validation services, Ramu said.

The IVS, which commenced in 2001, has a clietele of over 70-75 organisations. It services 10 per cent Infosys' clients across sectors including retail, banking and capital markets, finance, telecom and automotive.

"The IVS generates 6.2 per cent of the revenues of the company. We would be moving to China next year," he said.

The IVS Academy, setup with the objective of developing competency and knowledge management and offering training related to testing, process and domain competency building, "trained 500 employees last quarter," Ramu said.

The IVS testing lab enables testing on a variety of test beds-on most available browsers, hardware and software platforms-with a variety of standard testing tools, he said.