Sunday, 7 August 2011

Does Indian IT lag sustainability ?



Indian IT companies need to review their business model to become sustainable

Does Indian IT lag sustainability?
Indian IT sector, riding high on the outsourcing wave to expand its global footprint, seems to get stuck with this conventional model. But it is not the endgame rather it shows signs of becoming stagnant.
Once the realization sets in that the market is stagnating, and the existing business model goes "stale", these companies will have to think of what comes next. They will need to rejig their business models to garner growth and brand themselves as sustainable.
A sustainable enterprise is one that through its work, and not through its philanthropy, solves social and environmental problems and makes money while doing this. The idea behind sustainable enterprise is that it is possible that businesses for the 21st Century figure out how to jointly optimize results for all of the stakeholders around the business.
Although examples of such organizations don’t actually exist, most existing enterprises now have business experiments and new initiatives that reflect this new challenge. A sustainable corporation, which works with the base of the pyramid, must reach everyone including those at the base of the income pyramid.
Making cheap and affordable products is not enough anymore, you need to figure out how you embed new businesses with the community, thereby generating income and lifting the base of the pyramid. There is a need to bring about a convergence between the concept of base of the pyramid and clean technology to leapfrog into a sustainable era.
So, if you are a company, which wants to be around for a long time, to not have some commercial focus is like committing suicide. But will Indian businesses, where the dominant logic is still from the industrial world and where economies-of-scale is significant, be interested in such a model? The big growth is likely to come from the base of the pyramid and clean technology.
So, if you are a company, which wants to be around for a long time, to not have some commercial focus is like committing suicide.

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