CXOToday has engaged in an exclusive interview with Aditya Mina, Partner, Deloitte India
- What are some of the key trends driving the growth of managed services in India? And how do you see the industry evolving in India in the next 5-10 years?
Managed Services is not a new concept or solution. Managed Services have been around for a long time now. Back in the 90’s managed services were mostly break-fix IT. In the current juncture, managed services are rapidly re-emerging as an integral solution for companies to stay competitive and have the ability to adopt and maintain new technologies.
The landscape of Managed Services Providers (MSPs) is very dynamic given the technical advancements, so trends will keep evolving over time.
Key areas driving growth in managed services space include Cloud, which is management of clients’ cloud infrastructure and security and compliance where the work revolves around threat monitoring, incident response, vulnerability management, and compliance audits to help clients protect their sensitive data. Artificial Intelligence (AI) and Automation is another area where we see a rise in demand for managed services. AI and automation technologies are being incorporated into managed services to enhance efficiency and reduce manual effort. This is coupled with machine learning algorithms are being used to automate tasks and improve service delivery. Furthermore, Analytics, where the focus is on leveraging data analytics and providing actionable insights to our clients Hybrid IT Environments where MSPs are offering solutions to manage these complex hybrid environments, providing for seamless integration, and efficient resource utilization are also driving demand for these services.
These are the areas in which managed services will continue to grow in the India in the near future.
- How is the increasing demand for cloud-based services affecting the managed services market in India?
The demand for cloud-based service offerings will continue to have a significant and positive impact on the managed services industry both in India and globally.
Firstly, there is an increased adoption of cloud-based computing which is directly impacting the MSP market via the shift in focus towards cloud-based service offerings. More organisations are leveraging cloud platforms to host their applications and data. This increased adoption has led MSPs to offer a wide range of cloud managed service portfolios and thereby helping organisations with cloud migration, deployment, monitoring, optimisation, and security.
Cloud-based services provide organisations with better scalability and flexibility as compared to traditional on-premises infrastructure. MSPs are now leveraging cloud platforms to offer scalable resources on-demand, enabling businesses to scale their IT infrastructure quickly. They are efficiently managing and optimising cloud resources, ensuring cost-effectiveness and flexibility for their clients.
Next is the add-on services that now exist with the availability of cloud-based infrastructure and services. MSPs now provide advanced solutions such as cloud consulting, architecture design, DevOps automation, data analytics, and AI integration. They have expanded the range of services, to include cloud migration, disaster recovery & backup solutions, serverless computing, and managed database services as welland have developed specialised skills and knowledge in cloud technologies, allowing them to deliver comprehensive and effective managed services to their clients.
This usage of latest technologies with cost optimisation as a corner stone towards IT expenses, security measures and compliance certifications to ensure secure cloud-based environments, is working as a catalyst for increased cloud-based computing and helping MSPs serve their clients better.
Overall, the demand for cloud-based services has led to a transformation in the managed services landscape in India. Managed service providers have embraced cloud technologies and adapted their offerings to cater to the evolving needs of organisations. Cloud-based services have provided new opportunities for growth, enhanced service capabilities, and improved cost efficiency for managed service providers and their clients.
- How do managed services providers in India ensure the security and confidentiality of their clients’ data?
MSPs invest in robust security infrastructure and implement multiple layers of security controls to safeguard client data from unauthorised access and cyber threats. MSPs employ encryption techniques to protect client data both in transit and at rest and encrypt data at a data storage environment. To further strengthen this, MSPs implement strong access controls and authentication mechanisms to ensure that only authorised individuals have access to client dataMSPs continuously monitor their systems and networks for any security incidents or anomalies. They have incident response processes in place to quickly respond to security incidents, investigate breaches, and mitigate any potential damage.
- What are some of the challenges that businesses in India face when transitioning to managed services?
Businesses face a set of challenges while transitioning to managed services which can be bucketed into three segments: a. Technical challenges, b. Culture-linked challenges, and c. Vendor-related challenges.
Technical and culture-linked challenges are usually internal to the organisation. Technical challenges primarily emanate from integrating client systems with that of the MSP, which can be complex at times. The seamless integration remains a key challenge to date. Another challenge revolves mostly on establishing robust Service Level agreements (SLA) and its management. Data security is another roadblock that emerges during the transition. As the client will be entrusting data to a third-party MSP, the concern on security measures and compliance processes will always exist.
On the culture-linked challenges, the cultural shift to adopting managed services is a common hassle as there is a push back from IT teams of organisations to relinquish control on certain IT functions and relying on an MSP. This is further accentuated when this shift leads to change in roles and skills for employees within the IT team as the employees may have to acquire new skills or take on new responsibilities.
Lastly, effective vendor management and governance are critical to success of managed services. Lack of a robust governance framework with clear accountabilities often leads to risks that turn to issues in no time. In addition, choosing the right vendor is an uphill task and is often fraught with challenges.
However, all these challenges are addressable by having the right partner to help plan, select right and set up a robust change management and governance process to continuously assess and address any issues that arise during the transition to managed services.
- Can you talk about some of the innovative solutions being developed by managed services providers in India?
MSP landscape is very dynamic given the technical advancements. In the coming years, these innovative solutions will further evolve, and new solutions will come into play as well.
Top five domains where innovative solutions are concentrated are in the areas of Cloud, Security, Automation, Analytics and DevOps.
Most MSPs have developed cloud management platforms and tools to help clients optimise their cloud infrastructure. The solutions provide real-time visibility into cloud resources, cost, and workload optimisation. Security solutions is an area that is witnessing a lot of interest by both clients and providers. With key objective to protect clients’ digital assets, the industry is witnessing an array of security technologies and solutions.
Automation helps streamline IT operations and improve efficiency. Analytics as a domain has matured and is being leveraged to gather actionable insights from client data. Adopting DevOps practices and implementing continuous delivery pipelines is an ask from most clients which in turn, is working as a catalyst to build innovative tools, automation frameworks, to help clients accelerate software delivery.
- How do you ensure customer satisfaction and maintain long-term relationships with clients in the managed services industry?
Ensuring customer satisfaction and maintaining long-term relationships with clients is critical in the managed services industry.
MSPs must understand the needs of their clients and align their goals and metrics with their clients’ business objectives. MSPs need to measure and demonstrate value and impact that the services bring to clients’ businesses. They also need to conduct periodic business reviews to assess the performance, discuss future plans, and align strategies. These reviews provide an opportunity to demonstrate the value delivered and address concerns, if any.
Meeting or exceeding the SLAs and KPIs defined by the client contributes to the relationship. Proactively addressing any issues, providing quick resolutions, communicating transparently about service disruptions or maintenance windows and striving for continuous improvement in the services further helps in building the relationship.
Offering additional services such as consulting, strategic guidance, and innovation workshops to help clients leverage technology for business growth along with relevant use cases help cement the partnership further.
- How are emerging technologies such as AI and automation being incorporated into managed services offerings in India?
Emerging technologies like Artificial Intelligence (AI) and automation play a significant role in enhancing managed service offerings. MSPs leverage these technologies to drive efficiency, improve service quality, and deliver advanced solutions to their clients. Some of the solutions in this space are Intelligent Service Desks, Predictive Maintenance, Intelligent Security Solutions, Automation of Routine Tasks, Robotic Process Automation (RPA), and Intelligent IT Operations.
By incorporating AI and automation into their managed service offerings, MSPs can deliver enhanced efficiency, scalability, and advanced capabilities to their clients. These technologies enable MSPs to proactively address issues, optimise resources, and provide value-added services, ultimately improving the overall client experience.
New technologies like Generative AI (GenAI) have the potential to significantly impact managed service offerings in multiple ways and enhance the existing solutions. GenAI algorithms can be used to generate complex and highly customised solutions to address niche requirements of the clients. GenAI can analyse large datasets and identify patterns or optimise processes. GenAI can be leveraged to generate insights and recommendations based on data analysis. This can include predictive analytics, anomaly detection, and optimisation recommendations.
GenAI definitely opens up possibilities for MSPs to innovate and develop new service offerings. By leveraging GenAI algorithms, MSPs can explore novel ways to deliver managed services, develop intelligent applications, and create value-added offerings that leverage Generative AI capabilities.
- What advice would you give to companies looking to outsource their IT services to a managed services provider in India?
Outsourcing IT services to MSPs can result in cost savings. MSPs can leverage economies of scale to provide cost-effective services.
Also, MSPs have a team of experienced IT professionals with specialised skills and expertise in managing IT systems. Organisations can benefit from this expertise and access a wide range of IT services that they may not have in-house.
Moreover, MSPs can provide scalable IT services that allows organisations to expand or reduce IT services as required, without having to invest in additional IT infrastructure or staff.
In addition, levers like improved security, increased efficiency, and compliance helps strengthen the business case for outsourcing IT work to MSPs. This allows organisations to focus on their core business functions, achieve their strategic objectives, and drive business growth.
