X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Is 'green' the next big market for Indian IT? - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Aug 11, 2009

    Is 'green' the next big market for Indian IT?

    Green IT and cleaner technology are the buzz words that we hear every now and then. Well, this article is not about making IT green; but rather about making 'Green' happen through IT.

    Corporate dossiers and annual reports are replete with initiatives undertaken by IT firms for cutting their carbon-foot prints. While through inward looking approach of using cleaner processes, IT industry can make good some of the damage it causes to the environment, a lot more can be done using IT. No, we are not talking about corporate social responsibility here. We are talking about the sea of opportunity that lies in front of Indian IT industry in terms of cleaning the environment.

    Here are some facts:

    • Industry bodies suggest that by 2015, the market for systems supporting green accounting will be worth at least US$ 595 bn. Big businesses will revamp their spending on system for carbon accounting and sustainability reporting three times by then.
    • According to Gartner, by 2010, environment-related issues will be among the top five IT management concerns for more than 50% of state and local government organisations in world.
    • Gartner also predicts that by 2011, large global enterprises will mandate their suppliers to prove their "green credentials" via an audited process.

    In short, a huge market lies ahead for the IT service providers who can indeed help these organisations go green. Indian IT giants surely don't want to remain late-movers in this. It is evident from the fact that most of the big IT players like TCS, Infosys and Wipro are building specific offerings around the new vertical that is termed as "Ecology" or "Environment".

    Indian IT companies can go a long way in developing smart solutions to enable their customers in cutting costs and curbing environmental damage. These solutions can range from smart logistics, smart infrastructures to smart meetings. Indian IT firms are also seeing this as an opportunity to climb up the software value chain by providing "Green IT Consulting" to clients across industry verticals.

    Wipro's endeavors in this regard are worth a special mention. Wipro, India's 3rd largest IT services company is leveraging its presence in IT as well as lighting and consumer care business to use IT to provide cleaner solutions. No surprise that it won the Delhi metro rail project to provide eco-friendly low energy consuming lighting for 27 stations. The company is expecting that green services and solutions to bring in up to one-fourth of the company's revenue, three years from now. Azim Premji, Wipro's Chairman, recently signaled that his company is betting big on green technologies as he believes that green technologies with huge business potential, have a future as bright as the IT sector.

    The company already has in its portfolio, offerings like energy diagnostic tools, energy consulting practices to offer green IT services to its Fortune 500 customers. The company aims at generating 10% of consulting revenues from green IT consulting in the next couple of years, reaching US$ 500 m by 2010.

    No doubt, ecology and environment business is in a nascent stage. The sector indeed looks risky in the short term as companies fighting recession will find it hard to invest in eco-friendly technology. Still we suggest watch out for IT companies that are foraying into the green! We believe that sooner or later, this sector will gain utmost attention, for the obvious reason - survival.

     

     

    Equitymaster requests your view! Post a comment on "Is 'green' the next big market for Indian IT?". Click here!

      
     

    More Views on News

    Tech Mahindra: Our Revised View (Quarterly Results Update - Detailed)

    Aug 2, 2017

    A better than expected turnaround in performance results in a change in view.

    Wipro: A Decent Start to the Year (Quarterly Results Update - Detailed)

    Jul 27, 2017

    Digital services drive growth for Wipro in 1QFY18.

    Infosys: A Decent Start to FY18 (Quarterly Results Update - Detailed)

    Jul 14, 2017

    Infosys starts FY18 on an encouraging note with a stable performance.

    Ankit Shah's First Five Insider Recommendations (The 5 Minute Wrapup)

    Aug 5, 2017

    How to get exclusive insider recommendations from Ankit Shah.

    TCS: Currency Volatility Plays Spoilsport (Quarterly Results Update - Detailed)

    Jul 14, 2017

    TCS starts FY18 decently despite an adverse currency impact.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE IT


    Aug 18, 2017 (Close)

    S&P BSE IT 5-YR ANALYSIS

    COMPARE COMPANY

    MARKET STATS