The industry research publication titled ‘India ATM Managed Services and OutsourcingMarket Outlook to 2019 - Spurred by Expansion of the ATM Network’ presents
a comprehensive analysis of market size by value of the ATM Managed Services
and Outsourcing Market in India, market segmentation by number of ATMs existing
in the country by different models and by value, Outsourced ATMs in India by
different banks. The report entails the market share analysis and company
profiles of major players in the market and market dynamics. Comprehensive
analysis on growth drivers, issues and challenges in the market, recent trends
and developments and cost components and services rendered to banks by the
service providers and recent investments in the sector has been presented in
the report along with the future analysis.
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| India ATM Managed Services Market |
The ATM industry in India is rapidly transitioning from the
traditional methods of ATM operations into the internationally accepted ones.
Companies operating in other sectors in India as well as abroad are eyeing the
Indian ATM managed service and outsourcing market since the market offers
immense potential.
While during 2008 and 2009, the transaction based model
gained momentum, the revenue of the managed service market grew robustly till
2011. In the year 2012, bids for the deployment of ATMs for Public Sector Banks
(PSBs) were invited. This period dampened the growth of the market since
service providers quoted very low fee per transaction. Out of the 63,000 ATMs
that were to be deployed, only 30,000 were actually deployed since it became
difficult for companies to make the contract possible after bidding low. The
ATM managed services and outsourcing market is as of now witnessing decent
growth, which is expected to continue, at least in the short run.
It is estimated that INR ~ million was generated by service
providers under the ATM managed services model, while INR ~ million under the brown
label ATM model in FY’2014, which increased to INR ~ million and INR ~ million
respectively during the period April 2014 to October 2014. The
ATM managed services market can be further sub-divided on the basis on fixed
pay model and variable pricing model. Although the fixed pay model has
traditionally dominated the market, transaction based pricing is increasingly
being resorted to by banks. Reasons behind the same being more quality service
delivery on part of the service provider and overall cost benefit to the bank.
In terms of revenue, INR ~ million was generated by service providers from the
fixed pay model, while INR ~ million from variable pricing of ATM managed
services from April 2014 to October 2014.
The cash management market in India is concentrated with the
top four players capturing nearly ~% of the market. CMS Info Systems has been
the clear leader in the cash management market since several years and
commanded ~% share in FY’2014 with revenue of INR ~ million. The market size of
ATM cash management system in India was estimated to be INR ~ million in
FY’2011 which inclined to INR ~ million in FY’2014, thus showcasing a CAGR of
~% from FY’2011-FY’2014.
The business of ATM outsourcing has been
growing exponentially in India as the ATM industry continues to move from
banks’ managed ATMs to end to end deployment by service vendors. Managed
services companies are increasingly venturing into the ATM deployment space,
backed by private equity funding from investors. The managed services and
outsourcing market is characterized by high level of competition. Market
presence of the players tends to fluctuate as contracts for ATM management are
entered into and expire within an average of 4-5 years.
Major players operating in the ATM managed services and
outsourcing business include Prizm Payments, Tata Communications Payment
Solutions, AGS Transact Technologies, Financial Software and Systems (FSS),
Fidelity National Information Services (FIS) and Others.
From the period FY’2015-FY’2019, it is anticipated that the
complete outsourcing ATM market will grow robustly at a CAGR of 34.3% and
contribute ~% to the overall revenue of the ATM managed services and
outsourcing market by FY’2019. Furthermore, it is believed that in the long
run, completely outsourced ATMs will take over the ones under managed services,
since cost benefit to the bank under this model is greater as compared to the
managed services model.
Key Topics Covered in
the Report:
·
India ATM Managed Services and Outsourcing
Market Size by Value
·
India ATM Managed Services Market Segmentation
by Fixed Fee Model and Variable Fee Model
·
India ATM Outsourcing Market Segmentation by
ATMs Outsourced by Major Banks in India
·
Major services rendered to banks
·
Growth Drivers and Issues in India ATM Managed
Services and Outsourcing Market
·
Trends and Developments in India ATM Managed
Services and Outsourcing Market
·
ATM cost components and Services Rendered to
Banks
·
Company Profiles of Major Players
·
Investments in the Sector
·
India ATM Managed Services and Outsourcing
Market Future Outlook and Projections
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
Query@kenresearch.com
+91-11-47017199
Ken Research
Ankur Gupta, Head Marketing & Communications
Query@kenresearch.com
+91-11-47017199
