Abstract: This whitepaper aims to explore the growing demand for computer and peripherals rental/lease services in India, particularly in the context of large enterprises and corporates. It provides an overview of the computer rental/lease industry in India, analyzes the key reasons behind the increasing preference for rental/lease over outright purchase, and highlights the benefits and considerations associated with this trend. By understanding the factors driving the surge in demand for rental/lease services, businesses can make informed decisions regarding their IT infrastructure and optimize their operational efficiencies.
1. Introduction: India's corporate landscape has witnessed a significant shift in the procurement and management of computer systems and peripherals. In recent years, an increasing number of enterprises, including large corporations, have been opting for rental or lease arrangements instead of outright purchase. This whitepaper delves into the factors driving this trend and highlights the benefits it offers to businesses.
2. Overview of the Computer and Peripherals Rental/Lease Industry in India: This section provides a comprehensive overview of the computer and peripherals rental/lease industry in India. It examines the key players, market size, and recent trends, showcasing the growth potential of this sector.
According to a report by Market Research Future, the computer rental market in India is projected to grow at a CAGR of 6.8% during the period from 2019 to 2024.
The Indian computer peripherals market was valued at USD 4.33 billion in 2020 and is expected to reach USD 6.03 billion by 2026, with a CAGR of 5.5% during the forecast period (Research and Markets).
3. Factors Driving the Demand for Rental/Lease Services: This section explores the primary factors contributing to the rising demand for computer and peripherals rental/lease services in India's large enterprises and corporates.
Cost Efficiency:
Companies can reduce capital expenditure by choosing rental/lease options. For instance, a study by TechNavio suggests that leasing computer equipment can save businesses up to 20-30% compared to outright purchase.
In a survey conducted by IDC, 49% of the respondents mentioned cost savings as the primary reason for adopting IT equipment leasing.
Technological Obsolescence Mitigation:
According to Gartner, technology becomes obsolete every three to five years. By opting for rental/lease services, businesses can ensure access to the latest technology without the risk of owning outdated equipment.
A survey by Equipment Leasing and Finance Association (ELFA) found that 65% of respondents cited technology obsolescence as a significant factor driving their decision to lease equipment.
Risk Mitigation:
The same ELFA survey mentioned above revealed that 72% of respondents viewed equipment failure and downtime as their primary concerns. Rental/lease services often include maintenance and technical support, mitigating the risk of equipment failure and minimizing downtime.
Enhanced Flexibility:
Businesses can leverage rental/lease services to meet short-term project requirements, such as temporary office setups or events.
A report by Transparency Market Research predicts that the growing trend of temporary staffing and the gig economy will contribute to the demand for rental/lease services in the coming years.
4. Benefits and Considerations of Rental/Lease Services:
This section highlights the advantages and considerations associated with renting or leasing computer systems and peripherals, enabling businesses to make informed decisions.
Benefits:
In a survey by International Data Corporation (IDC), 57% of respondents stated that cash flow optimization was a key benefit of leasing.
According to the Equipment Leasing and Finance Foundation, leasing allows companies to preserve working capital, as they don't have to make a large upfront investment in purchasing equipment.
The same IDC survey highlighted that 63% of respondents considered flexibility and scalability as important benefits of leasing, allowing businesses to adapt to changing needs.
Considerations:
The IDC survey found that 34% of respondents expressed concerns about higher long-term costs associated with leasing compared to outright purchase.
While leasing provides access to high-quality equipment, customization options may be limited compared to purchasing.
Dependency on the service provider for maintenance and technical support is an important consideration for businesses.
5. Future Outlook and Conclusion:
This section discusses the future outlook of the computer and peripherals rental/lease industry in India and provides a summary of the key findings. It concludes by emphasizing the importance of considering rental/lease services as a viable option for large enterprises and corporates seeking to optimize their IT infrastructure management.