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| Choice Solutions eyes Rs 25cr from managed services |
| BS Reporter / Hyderabad May 04, 2009, 16:45 IST |
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Choice Solutions Limited, a Hyderabad-based end-to-end IT solutions provider, expects to clock anywhere between $3 million (about Rs 15 crore) and $5 million (Rs 25 crore) from its managed services provider (MSP) business in the next two to three years.
“Today, infrastructure has become a bottleneck for sustained growth, and managing it has become very important. Most Indian companies are currently in a ‘retired hurt mode’ and are in need of managed services to optimise certain infrastructure. Managed services is the next big wave and we want to ride on it,” KV Jagannath, managing director of Choice Solutions, told Business Standard.
Adopting a ‘push-and-pull strategy’ for the Indian market where adoption of the MSP model is slowly catching on, Jagannath said, the company would focus on the Indian market to capitalise on the early-mover advantage. “We expect 70 per cent of our MSP business, which was Rs 1.25 crore last year, to come from the domestic market and the rest from overseas,” Jagannath said.
According to industry studies, in-house IT departments spend approximately 80 per cent of their time and budgets on keeping their operations up and running. Yet, up to 40 per cent of today's outages results from human errors and the in-house staff spend 25-50 per cent of their time identifying and resolving problems. Various studies estimate the Indian managed services market to touch $10 billion by 2011, from the present $3 billion.
The 18-year-old company is looking at signing up Tier-II clients in India, typically sub-Rs 500-crore companies, to offer managed services. The company has already won 10 customers in the country during the fourth quarter of FY09 and is looking at adding 20 clients every quarter.
“Our aim is to deliver managed services to 100,000 devices in the first half of this fiscal, and 300,000 in the next three years,” Jagannath said.
Choice Solutions reported revenues of Rs 85 crore in the last financial year. It expects a growth of 30 per cent in the current fiscal on the back of its increased focus on the MSP business in the domestic market.
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