The market is expected to reach US$3.8 billion in 2013 from US$1.6 billion in 2009, and this growth is higher than the growth rate of the overall IT services market. The report says Wipro Infotech has the highest market share, and HCL Infosystems leads in user satisfaction.

This year will see the dominance of managed infrastructure services but things will change in the future. By 2013, the highest growth will be recorded by managed application services that are predicted to grow at a CAGR of 26.2 per cent.

About 66 per cent of CIOs surveyed by Springboard said they intend to adopt and engage with a managed services model rather than strategic outsourcing. These professionals think it will be more convenient to use managed services and perceive that by doing so, they will have access to the best of breed services without losing control of IT.

Sudip Saha, senior analyst, IT services, at Springboard Research, said Indians have used managed IT services in varied forms for more than 20 years. A lot has changed during this time and the market has gradually transformed from body shopping contracts or facility management services to a process-oriented delivery model.