Outsourcing Goes Green

Global Employees

As the IT market evolved, the concerns for energy conservation, resource optimization and scalability ushered in the concept of ‘going green’. Information technology forms the backbone of the global outsourcing industry, thereby making it imperative to align IT-oriented business processes to the worldwide acceptance of the green code. The growing demand for resource optimized business practices has pushed the service providers in India to implement green practices in their operating and delivery mechanisms.

According to Gartner, India’s spending on green IT and sustainability initiatives will double from $35 billion in 2010 to $70 billion in 2015 owing to the changing dynamics of the US and European market. This prediction strikes a chord with the increasing convergence of energy policies and technology at the global platform. Now the clear measurement of success for outsourcing destinations, like India, Philippines and China, would involve the creation of energy-efficient solutions that would help customers drive cost efficiency. It can be safely predicted that ‘Green IT’ is evolving as the most promising industry trend with increased efforts to eliminate inefficiencies and increase IT automation. Enterprises, irrespective of their market size, are robustly adopting ‘Cloud Computing’ as a part of their strategic decisions. Cloud computing has emerged as a major green IT enabler over the last decade as it reduces the carbon footprint of organization in leaps and bounds. Cloud computing has, over a period, enabled enterprises to consolidate their data centres thereby preventing a loss of energy.

Dawning The ‘Green’

The process of outsourcing was born out of the need to derive infrastructural efficiency, but over a period, assuming a far greater role of delivering value. Each service underwent tremendous transformation thereby helping enterprises revamp their IT operations to reduce carbon emissions with sustainable desktop, metering and data centre strategies.

The price of fuel or ‘energy’ is one of the most critical factors that determine the extent of business opportunities for outsourcing destinations. As the enterprises look forward to creating favorable reputation in the market, increasing investments are being made to transform IT operations by outsourcing them to efficient vendors who have capacities to deliver cloud-based services. According to Forrester Research, the global IT investments to ‘go green’ will reach a market value worth $4.8 billion by 2013. This increase in the IT investment would expand the market for green IT services.