Global Competitiveness Generates New Directions

Apart from Bangalore being the headquarters of India’s software giants such as Infosys and Wipro, the large multinationals all have major R&D establishments here. GE’s largest research center outside the United States and SAP’s largest outside Germany are here. Many automation majors have hundreds of design and development employees here too, including Honeywell, Rockwell, Invensys, ABB and others.  

Interestingly, the local thinking is not just aimed at how to improve outsourcing services, or play consumer catch-up. Strategic plans at many of the growing giants include major new developments where they can lead rather than follow.  

Next big opportunity 

The Indian software majors are excited about the next big opportunity that’s waiting to be developed—clean-tech systems. This is the programming and monitoring for the thousands of global companies who, in the next decade, will be launching the drive to become carbon neutral, or far more energy efficient than they are today. They see this need as inevitable; a safe bet rather than a strategic risk. 

Software companies such as Infosys call this E2K—similar to the label Y2K that accompanied the huge workload of software that came just before the year 2000 to prevent software crashes with the four-digit change. The key to winning E2K business, according to Infosys Chief Executive Officer Nandan Nilekani, will be to show giant global companies such as Wal-Mart how becoming more energy efficient doesn’t have to be a new cost burden. Beyond just improving their image or satisfying regulators, it can be an investment that makes money and gains a financial edge on the competition.  

The idea is to use energy-related software to reduce material costs, simplify logistics, drive down electricity charges and shorten supply chains. As large companies start to do this, it will require a lot of data management—which is what Infosys and others are focused on. They think the opportunity is huge, and they intend to provide the leadership that will satisfy the demand. 

Will this new clean-tech demand be satisfied from developers in the United States or Europe? Or, will the technology leadership come from places such as India?  

Jim Pinto is an industry analyst and commentator, writer, technology futurist and angel investor. You can email him at: [email protected]. Or review his prognostications and predictions on his Web site: www.JimPinto.com.