India – Huge Growth Opportunity for MPS
India has worked to transform into an open-market economy, with average growth of 7 percent every year since 1997. For the past two decades, India has worked to deregulate industry, privatize state-owned enterprises and reduce restrictions on foreign trade and investment.
Throughout this transformation, the services sector of the economy has grown in importance, employing a third of the labor force while producing more than half of the nation’s economic output. With English as a primary business language and a large pool of highly educated labor, India has become the world’s largest supplier of business process outsourcing (BPO) services.
Prior to the protracted global economic downturn, India’s role as a key BPO supplier led many OEMs to offer MPS programs to enterprise and global accounts in the nation. After the economic downturn, printing solutions became an attractive candidate for cost savings. MPS providers interested in the Indian market can certainly benefit from this shift.
The emerging MPS market in India currently draws US$86 million in annual revenue, with the direct market producing US$75 million and the indirect market contributing US$11 million. Despite the comparatively small size of MPS revenue in India, the market had the highest growth rate of all countries covered in Photizo Group’s 2010 MPS Size, Share and Forecast ReportTM.
Major industries for MPS adoption include financial services, manufacturing and healthcare, of which the majority are enterprise customers. Although enterprise firms in India are the most likely to engage in an MPS program, the number of national and mid-market accounts is growing.
The major vendors in the current Indian MPS market are Xerox, HP and Canon, who control a significant share of the market. While global OEMs are actively participating in the Indian market, the channel faces numerous barriers, including limited knowledge of MPS and unattractive financing options, among others.
Regardless of comparatively small revenue, OEMs are clearly paying attention to the Indian MPS market; no doubt attracted by a large services sector, an educated workforce and an increasingly stable political environment. Channel partners, to the contrary, face many obstacles at this point, though the widespread use of English should facilitate easy market entry for pre-existing software tools once the channel matures.
This information was garnered from Photizo Group’s India MPS Competitive Report.
Recently released, the report provides in-depth analysis of several key factors, including:
- An overview of the Indian MPS market history
- Indian MPS customer profile and market statistics
- MPS Path to Market and sales structures
- Indian Channel overview
- Indian MPS provider analysis, including SWOT analyses of Xerox, Canon, HP India, Ricoh and Lexmark
http://www.photizogroup.com/research/research/market-reports/india-mps-competitive-report/
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