HP targets 50% growth in managed services

HP is targetting a 50 per cent growth in its managed services business in India over the next year against stiff competition from IBM.

To reach the target HP is rolling out an aggressive strategy to bag more deals and is interacting with a number of Indian corporates. The company recently won a $125 million 10-year deal with Bank of India to manage its IT infrastructure.

Said Ganesh Ayyar, VP, managed services, Asia-Pacific & Japan, HP: "The Indian economy is booming and all major corporations are looking at deriving substantial benefits from their IT budgets. The Indian outsourcing market, according to IDC, currently stands at $467 million and is expected to reach $1.03 billion by 2008. Some of the major drivers for the growth is improvement in efficiency, reaching the market faster, adoption of global process and methodologies, focus on core competencies, talent acquisition and retention, besides cost savings."

He said that HP is seeing Indian companies looking at transition from traditional to transformational outsourcing.

The key growth segments are financial services, network and service providers, manufacturing and government. "In addition to this, we also see momentum building up in the healthcare and education segment," Ayyar noted.

Added Joe Hogan, VP, HP Services: "Globally, revenue of managed services is growing at 44 per cent for HP year-over-year and we continue to significantly outpace the market. IBM is a key and worthy competitor for us and we continue to refine our approach towards low cost delivery throughout the world."