Managed Services’ Cost Saving Proposition

Wednesday, September 22, 2010

Rahul Neel Mani


Nick Lambert, Managing Director, Global Markets, Cable & Wireless Worldwide talks to Vinita Gupta about the growth of managed services in India and Asia Pacific.

Q: How would a managed network service help a CIO and how secure is this service?

A: Businesses are increasingly looking at managed services as a solution to create value proposition which includes both cost savings and a competitive advantage for themselves to achieve their transformational goals in terms of business and IT, as well as human capital.

For some time now, CIOs have taken on board the idea of managed network services to reduce costs and to keep IT resources focused on their organisation’s core businesses, but not at the expense of innovation, performance and flexibility.  

They are realising today that outsourcing network functions to service providers is an efficient way to manage IT resources to support internal processes and maintain external relationships with customers, suppliers and partners, with the added reassurance of some degree of control and in-house management and tracking, while enjoying the benefits of specialised resources of a service provider.

In the area of security, it is important to note that managed services for infrastructure are quite mature, while managed services for cloud computing are more at an innovator’s stage, so CIOs must do a comprehensive due diligence before adopting these services.

Q:Why are enterprise managed services still at a nascent stage in India?

A: Traditionally, Indian enterprises have been dependent on their internal teams to manage their IT infrastructure. The concept of outsourcing or the benefits of doing so were previously not so apparent to them. However, we have now started seeing a lot of interest from our customers around Managed Services in the Asia Pacific as well as in India.

According to a recent study by Forrester Research, the total addressable managed services opportunity in India would be around $8.27 billion by 2013, growing at a CAGR of 19%. Hence, the managed network services space is likely to see a lot of action in the coming year.

Q:You recently launched the Multi-Service Platform (MSP) offering in India as well as in the Asia Pacific. How it will help grow your business?

A: Our Next Generation Network (NGN) or Multi-Service Platform (MSP) is not just about having a faster, more resilient network, but also enables Cable&Wireless Worldwide to provide enhanced support as well as predictable and seamless service delivery that our customers want and need.

We have just announced two new Ethernet services which will run on our MSP which has now been commercially deployed in the Asia Pacific in addition to India, the Middle East and Europe. Additionally, we have also evolved our solutions portfolio.

In the enterprise space, a continuing growth and explosive demand for bandwidth will continue to drive an increased demand for next-generation IP based solutions.

Q:What is the future of the telecom industry in India and the Asia Pacific? What role does the company play in terms of helping businesses and players in the industry?

A: There are three main trends in the telecom industry in India and the Asia Pacific at large. First, we see an increased demand for next-generation IP based solutions. Second, there is a growing desire for multinational companies to have greater flexibility and agility in their infrastructure. Last but not least, companies are looking to become more efficient and more cost effective by making better use of communications solutions.

In this increasingly connected world, East-to-West’ telecommunications has emerged as the primary driver of growth as enterprises expand their business across Asia and Africa. Increasingly, we see Asian multinationals going global and Western multinationals continue investing and expanding across Asia.

Cable&Wireless Worldwide can help them with their mission critical telecommunication needs as they invest outside their home markets and set up manufacturing, sales, and service organisations across the globe.

Q: What is Cable&Wireless Worldwide’s growth strategy?

A: We have significantly grown our business in the Asia Pacific in the last few years and are still going strong. The Asia Pacific has always been a significant contributor to Cable&Wireless Worldwide’s global business, and India is one of fastest growing markets for us globally.

Partnerships continue to be the mainstay of our approach towards building collaborative relationships with regional telecom carriers, and we will continue to forge good relationships with in-country carriers to meet our customers’ mission critical communications needs.

We have been investing and will continue investing with our customers’ needs in mind. Going forward, Cable&Wireless Worldwide will continue to maintain or build network resiliency to ensure that we are ready to deliver to customer needs at all times.

We will continue to drive competitive and flexible pricing as well as provide excellent service to our customers. Moreover, we will continue to drive and deliver value-added managed service solutions and next-generation services that ride on our next-gen network – Multi-Service Platform (MSP) – to suit our customers’ needs.

Cross-posted from CTO Forum

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