Remote infrastructure management (RIM) is poised to become a $13-15 billion opportunity for the Indian IT industry in another five years, according to a latest report by Nasscom and McKinsey.

The industry is also expected to create 3.25-2.75 lakh jobs in the same time. India 's current share of the RIM market stands at about $3.2-3.6 billion.

The study said that RIM, as an independent industry, could realise $26-28 billion in revenues by 2013. While 70-75% of infrastructure management roles can be outsourced, thus spelling an addressable market of $96-104 billion, the report said that vendors and captives in low-cost locations have captured only $6-7 billion of the RIM market so far.

“RIM is a mission critical service requiring sophisticated tools and reflects high customer confidence and relationships. By increasing RIM services the Indian IT industry is moving towards becoming a fully-integrated service provider,” said Nasscom president Som Mittal.

Added HCL Technologies CEO and Nasscom RIM Forum chairman Vineet Nayar, “After ADM and BPO, the RIM industry opens up yet another big opportunity for Indian players to reposition themselves in the global market and to move up the value chain from not just being a cost and intellectual leader to a true transformation leader. In RIM, labour arbitrage is just 25% of the potential value created to the client, emphasising the move away from just cost advantage.”

The majority of growth in the area of remote infrastructure management is likely to come from offshoring midrange services, and network towers, likely to account for about 70% of the total opportunity. The banking, financial services and insurance industries will lead the growth, followed by the telecom industry, the report said.

McKinsey partner Vivek Pandit said, “It's the convergence of three independent forces, the rapid evolution in technologies and IT architectures, changes in customer behaviours and demand patterns, and finally, developments in the vendor and offshore supply environment, that have propelled the industry at a pace faster than earlier conceived, and will continue to accelerate RIM adoption.”

The report said that the RIM industry would require augmentation of the talent supply, creation of technical institutes that offer core technology and process skills training, and an independent body to systematically audit and publish ‘vendor capabilities' in line with global benchmarks and best practices.