green it framework for small and medium scale indian it
TRANSCRIPT
Independent Research Project
Green IT Framework for Small and Medium Scale
Indian IT Services Companies:
Roadmap for Environmental Sustainability
Submitted to
Prof. Sanjay Mohapatra
By
Anuj Jindal
February 2010
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Acknowledgement
“Gratitude is the memory of the heart.” - Jean Baptiste Massieu
My project underwent a journey of 5 months and at the end of this journey, I look back to find
the support of many in ensuring the completion of this journey.
My first and foremost thanks and appreciation goes to my guide, Prof. Sanjay Mohapatra, who
has been my inspiration and guiding light during my academics and this project. The troubles
and uncertainties I faced during this project could not have been resolved without his advice.
This report belongs to him more than to me.
My gratitude goes to Ms. Sagarika Bose, Vice President – Research, NASSCOM Foundation, for
believing in me and giving this important topic to me. She was all ears for my ideas and her
support in the form of letter of request for interview has been one big help to ensure that the
framework was tested and improved.
I owe special thanks to the respondents of my research survey - Mr. Arun Patnaik, Managing
Director, AABSyS IT Pvt. Ltd., Ms. Artee Mahala, Admin, Allay Software Solutions, Ms. Lagna
Panda, Manager - HR, CSM Technologies, Mr. Manoranjan Mohapatra, AVP Singapore, Exilant
Consulting, Mr. Srijat Mishra, CEO & Managing Director, Kalingasoft and Mr. Braja Ballavkar,
Managing Director, Karak Technologies for giving their valuable time and feedback for the
framework. I hope I have done justice in incorporating their suggestions in the framework.
Finally, I would like to express my gratitude to my wonderful institute – Xavier Institute of
Management for challenging students like me with such opportunities. My professional growth
and maturity has been possible only because of the open learning environment, participative
teaching and the culture of questioning promoted by my esteemed institute.
Anuj Jindal
February 20, 2010
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Table of Contents
List of Acronyms .......................................................................................................................................... 5
Executive Summary ...................................................................................................................................... 6
1.0 Background ............................................................................................................................................. 7
1.1 Green IT – The Concept...................................................................................................................... 9
1.2 NASSCOM and Green IT ................................................................................................................. 10
2.0 Objectives of the study .......................................................................................................................... 11
3.0 Methodology ......................................................................................................................................... 11
3.1 Methodology for Objective 1 ............................................................................................................ 11
3.2 Methodology for Objective 2.1 ......................................................................................................... 12
3.3 Methodology for Objective 2.2 ......................................................................................................... 12
3.4 Methodology for Objective 2.3 ......................................................................................................... 13
4.0 Definition of Small and Medium Scale ................................................................................................. 14
4.1 Data Collection ................................................................................................................................. 14
4.2 Analysis & Conclusion ..................................................................................................................... 15
5.0 Development of Preliminary Extensive Framework ............................................................................. 17
5.1 Data collection from existing frameworks ........................................................................................ 17
5.2 Limitations of existing frameworks .................................................................................................. 21
5.3 Identification of the Constructs ......................................................................................................... 23
5.4 Preliminary Extensive Framework.................................................................................................... 24
6.0 Testing of preliminary extensive framework ........................................................................................ 27
6.1 Data Collection ................................................................................................................................. 27
6.2 Analysis............................................................................................................................................. 28
6.3 Applicability of the framework ......................................................................................................... 30
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6.4 Conclusion ........................................................................................................................................ 32
7.0 Proposed Green IT Framework ............................................................................................................. 33
7.1 Green IT Framework for Unlisted Indian IT Services Companies ................................................... 34
7.3 Benefits of the proposed framework ................................................................................................. 37
8.0 Conclusion ............................................................................................................................................ 38
8.1 Limitations of the proposed framework ............................................................................................ 39
8.2 Scope for further research ................................................................................................................. 40
9.0 Annexure ............................................................................................................................................... 41
Annexure 1: Deloitte‟s Green IT Framework ......................................................................................... 41
Annexure 2: Gartner‟s Green IT Strategy formulation approach ........................................................... 42
Annexure 3: Accenture Green Maturity Model ...................................................................................... 43
Annexure 4: Forrester Research‟s Green IT Maturity Assessment ........................................................ 44
Annexure 5: Preliminary Extensive Framework ..................................................................................... 45
Annexure 6: List of respondents ............................................................................................................. 49
Annexure 7: Profile of the companies ..................................................................................................... 49
Annexure 8: Case study - Green IT initiatives of Aabsys IT Pvt. Ltd. ................................................... 50
Annexure 9: Dimension - Governance .................................................................................................... 52
Annexure 10: Dimension – Infrastructure .............................................................................................. 53
Annexure 11: Dimension – Procurement ................................................................................................ 53
Annexure 12: Dimension – IT Environment ........................................................................................... 54
Annexure 13: Dimension – Operations ................................................................................................... 55
10.0 Bibliography ....................................................................................................................................... 56
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List of Acronyms
BSE Bombay Stock Exchange
GDP Gross Domestic Product
ICT Information and Communication Technology
IT Information Technology
NASSCOM National Association of Software and Services Companies
NF NASSCOM Foundation
PEF Preliminary Extensive Framework
ROI Return on Investment
STPI Software Technology Parks of India
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Executive Summary
World today faces the threat of climate change and global warming and there is an urgent need to
take action that can prevent unexpected consequences. Carbon emissions are seen as one of the
main contributors to global warming and governments, businesses and communities are coming
together to find ways to reduce their adverse environmental impacts. Businesses have a larger
responsibility towards social and natural environment because they consume resources from their
environment and also end up polluting the same. IT industry is seen as one of the large consumer
of energy and by reducing the same it can have a large scale impact. Green IT has emerged as the
term that represents the initiatives IT organizations can take to reduce their resource-utilization
by optimum usage and producing lesser waste.
Trade body representing the Indian IT companies, NASSCOM, plans to have a framework for
Green IT which will help the companies plan their Green IT strategies as well as assess the
existing initiatives. Present study is part of the background work being undertaken to build the
framework. Four Green IT frameworks from some of the leading global research and consulting
firms were analyzed to develop a preliminary extensive framework. The framework was tested
using a sample of six IT Services companies in Bhubaneswar and the feedback was incorporated
to update the framework. This paper presents the proposed framework for Green IT for Small
and Medium Scale Indian IT Services companies. Both benefits and limitations of this
framework are studied to define the scope for further research. As the framework becomes more
robust, its applicability to diverse scenarios improves and comparability of assessment results
can be achieved.
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1.0 Background
We live in a world which is endowed with finite resources having competing uses. This requires
us to make prudent choices from among the ways to utilize these resources. Here the specific
reference is to natural resources. We derive these resources from our surroundings which we call
as our environment. For the development of the human race, it was felt that we need to exploit
these resources to their fullest to achieve greater growth, generally measured in terms of
percentage increase in income, profits or gross domestic production (GDP) over the years. In the
process, resource depletion occurred and further extraction of natural resources is putting an
increasing pressure on the natural environment. In addition to that, we also end up polluting
these very resources, making them unfit or unavailable for use. Then there are issues on equity
because certain groups of people have the access to the resources and contribute to their
pollution, while there are many others who do not get access to natural resources for their
development or they are forced to use the polluted resources (United Nations Millennium
Campaign, 2010). Whatever the case may be, resource access and resource utilization are issues
that are important for sustainable development.
Sustainable development is a term that has come in vogue because we have acknowledged that
business-as-usual attitude is not going to work. Sustainable development suggests that we try and
achieve a balance between economic growth, social equity and environmental protection (The
Environmental Literacy Council, 2008). Till some years back businesses and corporations had
only been focusing on economic growth, but lately the realization has dawned upon the
businesses that they are part of an environment which they share with many other stakeholders
and they expect a responsible behaviour from the corporations. Thus emerged the term Corporate
Sustainability, which while recognizing the importance of economic growth also requires the
corporations “to pursue societal goals, specifically those relating to sustainable development –
environmental protection, social justice and equity, and economic development. (Wilson, 2003)”
Environmental Sustainability incorporates the fundamentals of sustainable development in the
context of preservation of the natural ecosystem‟s regenerative capacity (Carroll & Turpin,
2003). It has importance for businesses pursuing corporate sustainability because environment
and communities are crucial stakeholders and every attempt should be made to reduce the
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businesses‟ impact on them (Kercher, 2007). The debate on global warming is becoming
stronger by the day and both corporations and governments are beginning to realize their role in
slowing the pace of climate change. Different sectors of industry consume natural resources at
varying rates, but each has an opportunity to optimize and reduce resource utilization by
improving manufacturing and internal processes (Friedman, 2008), incorporating better and
cleaner technologies (Cleantech, 2007), reducing the waste they create (Smith, Brown, Ogilvie,
Rushton, & Bates, 2001) and establish policies for efficient energy management (Press
Information Bureau, 2009) and increasing the use of renewable sources of energy (European
Union, 2008).
Information Technology (IT) industry entered the stage quite late compared to manufacturing
industry but it has been quick to gain scale and now it has become one of the prime consumers of
energy owing to the technologies used in the industry. This has to do with the fact that
automation requires widespread adoption of IT in various industries, be it automobiles, telecom,
utilities, manufacturing, transportation etc. Due to this scenario, IT has come to be seen as an
area where resource optimization is required.
Increase in green house gases is considered as one of the reasons for global warming and
Carbon-di-oxide, or CO2, is believed to be one of the main gases responsible for heating up the
environment. To assess the environmental impact of an organization, one of the measures used is
through the calculation of CO2 emissions. The relationship between emission of green house
gases and IT is established in a study by global research firm Gartner. Published in 2007, the
study estimated that Information and Communication Technology (ICT) contributes
approximately 2% of global emissions (Mingay, 2007). This figure has significance in
establishing the extent to which ICT can make efficiency enhancements to mitigate the threat to
the environment. Another report by „The Climate Group‟ sees ICT‟s role in a larger context.
According to the report, while ICT sector “plans to significantly step up the energy efficiency of
its products and services, ICT‟s largest influence will be by enabling energy efficiencies in other
sectors, an opportunity that could deliver carbon savings five times larger than the total
emissions from the entire ICT sector in 2020 (The Climate Group, 2008)”. In this context, Green
IT presents a new paradigm for the IT industry.
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1.1 Green IT – The Concept
Laurie McCabe (McCabe, 2009) describes Green IT as “the study and practice of using
computers and IT resources in a more efficient and environmentally responsible way. Computers
and computing eat up a lot of natural resources, from the raw materials needed to manufacture
them, the power used to run them, and the problems of disposing them at end of life”. This
definition captures the whole life-cycle of energy and material requirement in an IT organization
and puts emphasis on an alternative way to resource utilisation so as to make it efficient.
According to Mingay (Mingay, Green IT: The New Industry Shock Wave, 2007), Green IT
refers to the “optimal use of information and communication technology for managing the
environmental sustainability of enterprise operations and the supply chain, as well as that of its
products, services and resources, throughout their life cycles”. Mingay‟s definition brings the
supply chain also under the purview of Green IT. Along with that, he also puts emphasis on
certain other elements of Green IT, such as having an environmental policy & strategy in place,
metrics to measure & analyse performance, creating environmentally responsible staff behaviour,
energy management and technology enhancement.
While we talk about the environmental responsibility of an organization, Green IT makes
business sense as well. In a report published in 2007, Deloitte Consulting argues that Green IT is
a source of competitive advantage (Pak, Park, & Rydell, 2007). The report states that Green IT
offers “the opportunity to gain almost immediate ROI through reduced energy costs, as well as
boost workforce morale and productivity, enhance the company‟s reputation in the marketplace,
and satisfy anticipated regulatory requirements around energy use and global greenhouse gas
emissions.” The report also highlights a transformation in the marketplace and even if going
green may or may not be a priority for the companies, they have “no choice but to ride the „green
wave‟ or get knocked over by it.”
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1.2 NASSCOM and Green IT
National Association of Software and Services Companies, NASSCOM, is the trade body
representing the Indian IT services and IT-enabled services companies. Sensing the need of the hour,
NASSCOM has taken certain steps in promoting Green IT among Indian IT companies. According to its
website, “Indian firms need to transform their approach to Green IT from „Obligation‟ to „Opportunity‟.
In other words, the firms should use IT pro-actively to holistically transform into „Green‟ businesses
rather than only focusing on making IT infrastructure, services and products „Green‟” (NASSCOM,
2009). Therefore, it has established working groups on green IT in the field of „green infrastructure‟,
„policy and regulatory framework‟ and „green warriors‟ (Business Standard, 2009). These groups have
representation from inside & outside the industry and their mandate is to identify industry-best practices
in their areas and NASSCOM would like to spear-head the movement for adoption of these practices by
its members.
NASSCOM Foundation (NF), the corporate social responsibility arm of NASSCOM, plans to
conduct an extensive research in the field of Green IT with an objective to advocate for such
initiatives with its members. The present study is part of the background work being undertaken
to develop a Multi-tier Green IT Framework for Indian IT Service companies. The framework is
intended to serve two purposes:
1. Evaluate the environmental performance of IT Services companies
2. Help them to enhance their environmental sustainability
The study will focus specifically for developing a framework for Small and Medium scale IT
Services companies. Also, it should be a progressive framework, so that not only the companies
can know where they stand but also the framework should be able to guide them to improve their
performance on the assessment.
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2.0 Objectives of the study
The present study has two main objectives:
1. To define the criteria for identifying small and medium scale Indian IT services companies
2. To develop the framework to act as an assessment tool as well as a guide for environmental
sustainability
The second objective has further sub-objectives:
2.1 To develop a Preliminary Extensive Framework (PEF)
2.2 To test the PEF
2.3 To update the PEF to propose the Green IT Framework for Small and Medium Scale
companies
3.0 Methodology
The study can be divided into two stages. Stage 1 requires definition of criteria to identify small
and medium scale IT services companies.
3.1 Methodology for Objective 1
Sampling Design
IT Services companies having offices in Bhubaneswar were identified as the sample for this
study. Stratified Sampling technique was used by considering Bhubaneswar as a stratum which
contains all the kinds of IT companies (Domestic, MNC, Product-oriented and Services-
oriented). The necessary criteria for the company to be included in the sample is that it should
not be part of a foreign parent and its registered headquarter should be in any Indian city.
Data Collection & Analysis
Company website was used as the secondary data source to prepare the profile of the company.
Based on the profiles of these companies, characteristics were identified to determine the
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segments of companies. The necessary criteria for defining the segments were that the inter-
group heterogeneity should be identifiable and intra-group homogeneity should be consistent.
In stage 2, the framework for small and medium scale IT services companies has to be developed
and tested. From the data analysis of survey and feedback from the respondents, the framework
will be updated to propose the Green IT Framework for Small and Medium Scale Indian IT
Services companies.
3.2 Methodology for Objective 2.1
Sampling Design
Since the framework has to function both as a guide and as an assessment tool, Green IT
frameworks by four leading global research and consulting firms were identified. Sampling
involved Judgmental Sampling technique for identification of the frameworks. The frameworks
used were from Deloitte Consulting, Gartner Research, Accenture Technology Consulting and
Forrester Research.
Data Collection & Analysis
The assessment criteria were studied and constructs for the Green IT Framework were identified.
Using these constructs, variables were developed and measurement scale was defined. The
framework that was developed was termed the Preliminary Extensive Framework (PEF) because
based on the review of the existing frameworks, the dimensions and sub-dimensions in these
frameworks were re-grouped according to the constructs. All the three – constructs (dimensions),
variables and rating scale were then needed to be tested.
3.3 Methodology for Objective 2.2
Sampling Design
Nine IT Services companies having Indian origin and office in Bhubaneswar were approached to
participate in the testing of the framework. Convenience Sampling served as the sampling
technique. Out of the nine IT Services companies, only six agreed to participate in the survey.
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Data Collection & Analysis
The PEF was incorporated into a questionnaire, which also included questions on the profile of
the participating companies. Qualitative survey in the form of in-depth interview, with the
questionnaire as the guide, was undertaken and each participating company was assessed using
PEF. This helped in identifying the variables or points on the rating scale which were irrelevant.
The respondents also gave their feedback which also formed the basis for developing the Green
IT Framework for Small and Medium scale IT Services companies.
3.4 Methodology for Objective 2.3
Data Collection & Analysis
The survey findings were plotted on graphs for each construct (dimension). Results were
analyzed qualitatively and improvements were identified and incorporated. Thus the first
iteration of testing and review produced the Green IT Framework for Small and Medium scale IT
Services companies.
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4.0 Definition of Small and Medium Scale
4.1 Data Collection
The sample for this study has been defined as the Indian IT Services companies having offices in
Bhubaneswar city. To generate the list of the companies, web resources from
www.fundoodata.com were used. It is one of the largest web-directory of Indian companies. The
web-search resulted in the following list of companies:
S. No. Company Name Annual Turnover No. of employees
1 Aabsys IT Pvt Ltd 0-10 Crores 51-100
2 Allay Software Solutions 0-10 Crores 10-50
3 Enterprise System Solutions 0-10 Crores 51-100
4 Kalinga Software 0-10 Crores 51-100
5 Karak Technologies 0-10 Crores 10-50
6 Lee & Nee Softwares 0-10 Crores 251-500
7 Mindfire Solutions 0-10 Crores 51-100
8 MM Softwares 0-10 Crores 51-100
9 Orissa Computer Application
Centre 0-10 Crores 101-250
10 Orisys Infotech 0-10 Crores 51-100
11 Suryanandan.net 0-10 Crores 51-100
12 Exilant Consulting 10-100 Crores 251-500
13 Educomp Solutions Ltd 250-500 Crores 2501 -5000
14 Infosys 5000+ Crores 5001 & above
15 Mahindra Satyam 5000+ Crores 5001 & above
16 TCS 5000+ Crores 5001 & above
17 Wipro 5000+ Crores 5001 & above
Table 1: List of IT Services companies in Bhubaneswar
Apart from the top 4 IT Services companies, namely Infosys, TCS, Mahindra Satyam and Wipro,
13 other small and medium IT Services companies have their offices in Bhubaneswar.
It was observed that the companies were of following types:
IT Product developer
Web developer
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IT Support services
Web-hosting services
ERP Solutions
eGovernance
IT Software Services
4.2 Analysis & Conclusion
Of these 17 companies, only 5 companies are listed on the Bombay Stock Exchange (BSE). A
thorough search on the company websites indicated towards a common observation. All the
companies which are not listed on a stock exchange reveal little or no financial or other
information related to company‟s operations. All the listed companies, on the other hand, publish
an annual report which also includes information about their corporate social responsibility
initiatives, Green IT being one of them. Some listed companies do not publish any information
related to their social initiatives. It may be because of absence of such initiatives or may be the
company does not deem them important enough to highlight in the public domain.
The conclusion that has been drawn from this is that due to regulatory requirements, companies
have to come out with an annual report each year and inform the investors about the progress of
the company. Because the shareholders, regulators, customers, employees and financial
institutions demand an organization to have a responsible image and good social and
environmental behaviour is seen as a value add to the shareholders and the customers, majority
of the firms listed on stock exchanges publish information about their social initiatives on their
websites and annual reports.
On the other hand, unlisted firms do not come under regulatory purview, so they are not required
to submit information about the company in public domain. Also, the competitive pressures are
intense in this segment and therefore the focus is on survival and cost-competitiveness with little
attention to having an image of a responsible corporate citizen. Also, many of these firms operate
in leased in spaces and they have little control on their location. It was observed in Bhubaneswar
that many of the small and medium firms have their offices in Software Technology Parks
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(STPI) and they have access to the facilities offered by STPI only and they can exercise little
control over it.
Based on these insights, the framework will be developed for Unlisted Indian IT Services
companies. The unlisted companies have comparatively less revenues than the Listed firms.
Majority of firms in this segment, thus, are of small and medium scale.
The framework is expected to ensure comparability among the segment members so that based
on the evaluation, a ranking list can be generated and benchmarks can be identified. The
benchmarks can help companies set measurable and identifiable goals and clear timelines for
implementation of plans can be established.
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5.0 Development of Preliminary Extensive Framework
5.1 Data collection from existing frameworks
The present study has attempted to identify some of the important frameworks for Green IT
existing in the industry. Depending on the agenda, these frameworks vary from each other. There
are nuanced differences and so their applicability can be different for organizations at different
phases of Green IT adoption and implementation.
Deloitte’s Green IT framework
Deloitte Consulting has a Green IT framework for guiding a company in implementing their
Green IT strategy (Pak et al., 2007). The eight-step approach starts with the formation of a Green
IT strategy aligned with the company‟s sustainability goals and touches on various facets of an
organization which can be improved for „greening‟ the organization. The last step requires the
company to set its goals in line with the long-term strategy for the organization. For complete
framework, please refer to Annexure 1.
We can represent Deloitte‟s framework in the following manner:
Figure 1: Green IT Framework by Deloitte Consulting
The step by step approach leads the organization to the path of environmental sustainability.
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Gartner’s Green IT Strategy approach
Another global research firm, Gartner, lists down nine steps to formulate a Green IT strategy
(Mingay, Green IT: The New Industry Shock Wave, 2007). This framework shares many
similarities with Deloitte‟s Green IT framework, but differs in that it begins with an assessment
of the company‟s environmental impact and suggests that the areas where IT can have the most
impact be identified. So it advocates for an assessment of the present situation to form the
strategy for future by looking out for gaps which can be handled on priority and profitably. There
is also a lot of focus on the policy formulation aspects in Gartner‟s framework and we can infer
that it emphasizes the role of governance and top management in ensuring that the organization
fulfills its commitment to environmental sustainability. Please refer to Annexure 2 for Gartner‟s
Green IT Strategy formulation approach.
There are many organizations who do not understand the jargon associated with Green IT, or
who have already started taking steps to optimize resource utilization without considering the
fact that it also reduce it environmental impact. Green IT brings together all the possible
initiatives under an umbrella term which helps an organization to become environmentally
cleaner. These initiatives may be at different stages of maturity and in the absence of a Green IT
strategy, the organization may not be following a holistic plan for Green IT.
Here comes the importance of measurability and assessment tools. An organization needs an
independent assessment for where it stands on Green IT and on what remains to be done.
Accenture Green Maturity Model
Global management consulting firm Accenture has developed a Green Maturity Model
(Accenture Technology Consulting, 2009). It is a web-enabled tool that helps to identify
available opportunity for creating new ways of working that can help transform the business and
enable high performance (Accenture Technology Consulting, Accenture Green Maturity Model,
2009). The model has 5 dimensions on which it evaluates the Green IT initiatives of a company.
Each dimension is composed of 3 variables or statements. Associated with every variable are 6
statements which define progressive levels of Green IT implementation. These levels are the
scale for measurement of performance of a company on each of the variables. So in all there are
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15 variables being measured on a 6 point scale. Accenture Green Maturity Model is shown in
Annexure 3 (the scale has not been shown because of space constraints).
The 5 dimensions of the model are shown below:
Figure 2: Five dimensions in Accenture Green Maturity Model
The model is comprehensive and the 6 point scale is effective in capturing the different stages of
development of the Green IT strategy and enables an organization to have a balanced view of its
strategy.
Forrester Research’s Green IT Maturity Assessment
Forrester Research, an independent research firm, has also developed a similar assessment
methodology, called as the Green IT Maturity Assessment (Mines & Washburn, 2009). The
essence of the methodology is same as that of Accenture Green Maturity Model but it is much
more comprehensive as it has 26 variables divided over 4 dimensions.
The methodology evaluates the current state of Green IT in an enterprise across the 4 dimensions
and 26 sub-dimensions and assigns a maturity rating on a scale of 4 points:
1. Needs improvement
2. Improving
3. Robust
4. State of art
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Forrester uses its own data collection process to determine which of the maturity rating is
applicable to a particular sub-dimension. The 4 dimensions in the Forrester Research Green IT
Maturity Assessment are:
Figure 3: Four dimensions in Forrester Research Green IT Maturity Assessment
The definitions of maturity ratings differ for different sub-domains. Annexure 4 shows the
Forrester Research‟s Green IT Maturity Assessment (the scale has not been shown because of
space constraints).
As can be seen from the two models, one organization can be assessed in two different ways and
depending on the focus of the model and inclusion or exclusion of certain variables, the ratings
can vary significantly.
Characteristics of these frameworks
By carefully studying the characteristics of each framework, we can develop an extensive list of
variables included in these frameworks and then we can re-group them based on the
commonalities and our purpose. Following characteristics have been observed from these
frameworks:
Company‟s enterprise sustainability goals
Regulatory compliance
Environmental assessment
Supplier relationships
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Customer focus
Data center and device management
Hardware and Software environment management
Efficiency improvement in support infrastructure
Enterprise operations
User Training
Virtual meetings
Telecommuting
Green building
Green energy
Managing and reducing waste
5.2 Limitations of existing frameworks
The frameworks from Deloitte and Gartner are helpful from a strategy formulation point-of-view
but they are assessment tools themselves. Accenture and Forrester Research have developed the
Green IT assessment tools and we can see that there are certain drawbacks with these assessment
tool:
These are generic tools applicable to any kind of industry. Indian IT companies operate in
different set of conditions and some of the assessment criteria are not applicable to them.
Therefore, there is a need to align the framework to the existing scenario.
Each framework has a heavy bias towards one or other dimension. For example,
Forrester‟s Green IT Maturity Assessment involved 7 out of 26 sub-dimensions to
evaluate data center efficiency, whereas Accenture‟s Green Maturity Model has only 3
out of 15 variables assessing the data centers‟ performance.
The constitution of assessment criteria follows different logics. For example, Accenture
has a separate dimension on Procurement, whereas Forrester‟s model refers to
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procurement as part of its Governance dimension. Therefore, the priority to certain
dimensions is given in one model and it misses out in other model. The model for Indian
IT companies should keep in view the priorities and opportunities for the specific sector.
Same framework for large, medium and small companies cannot be used as they operate
in completely different conditions. A small company may not have a data center or it may
not be able to dictate it procurement policies because of its size. A medium scale
company may not be able to fulfill the requirements of having its offices run completely
by renewable energy. These are some of the cases in which a generic framework may not
suit the conditions for specific companies.
In the existing frameworks, the dimensions have not been defined and how they are inter-
related and provide a holistic approach to strategy formulation has not been established.
The scales defined in both the assessment tools are more than required and some of the
levels can be clubbed together as it makes practical sense.
While the frameworks suggested by Deloitte and Gartner begin with defining the long
term vision of companies for Green IT, the assessment tools of Accenture and Forrester
Research only touch the governance aspect through discussion on policy formulation.
The value that an organization can derive out of Green IT is not discussed or assessed in
terms of long term strategic planning and decisions.
IT Services companies are customer-driven and Green IT should make business sense to
them. The present assessment tools are silent on these aspects.
Employees are important stakeholders in the implementation of Green IT as it becomes
part of an organization‟s lifestyle. Deloitte‟s framework advocates training of end-users
but present assessment tools do not incorporate criteria on assessing a company on
employee involvement and motivation in carrying out Green IT initiatives.
Given these limitations, there are certain challenges in applying these frameworks to Indian IT
Services companies. Indian IT industry is primarily exports-oriented and is heavily biased
towards services business, with some amount of business being done by product-development
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firms. Large scale IT Services firms like Tata Consultancy Service, Infosys, Wipro and Mahindra
Satyam etc. have their development sectors across the globe and their headcounts may range
from 50000 to 150000. There are also a large number of Indian IT companies in the medium and
small scale operating in metros and other upcoming cities. The industry has to operate in an
environment where infrastructure is still not mature and yet the demand from the customers is
strong year-on-year. Also, the projects are client-driven and an organization has to strictly adhere
to the guidelines from its customers. What it means that for different clients, a particular
company may need to have separate development and testing environments in the same facility.
The regulatory mechanisms in the country are not strong, but the business requirements require
companies to self-regulate and set higher standards of performance.
Based on these gaps in the existing frameworks and assessment tools, a preliminary extensive
framework has been developed.
5.3 Identification of the Constructs
As discussed in the previous sections, Forrester Research has 4 dimensions in its framework and
Accenture has 5 dimensions in its framework. We also observed certain commonalities in these
frameworks and some more characteristics can also be added from the frameworks of Gartner
and Deloitte.
We can develop the constructs for further research from these dimensions. From figure 4 we can
observe that 5 constructs emerge:
1. Governance
2. Infrastructure
3. Procurement
4. IT Environment
5. Operations
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Figure 4: Constructs for Preliminary Extensive Framework
Based on these constructs, or dimensions, we can develop PEF by defining the variables and
rating scale.
5.4 Preliminary Extensive Framework
For the 5 constructs, 5 dimensions are first defined in the following manner:
1. Governance: It deals with the policy measures adopted by the company for
environmental sustainability.
2. Infrastructure: It discusses the organization‟s focus on new and renewable sources of
energy to meet its demands and on developing green buildings meeting the norms for
reducing energy consumption.
3. Procurement: This dimension highlights organization‟s commitment to developing an
eco-system of suppliers who will help it „green‟ its hardware and supplies.
4. IT Environment: This dimension lays focus on opportunities for the organization to re-
look at its IT infrastructure to reduce its resource consumption.
25
5. Operations: It deals with the day-to-day operations of the organization where there are
opportunities to save small resources but total volumes may be very large. This may also
indicate the „lifestyle‟ of the organization.
These dimensions can be seen as pillars of Green IT strategy of an organization.
Figure 5: Five dimensions in the Preliminary Extensive Framework
26
The interaction between these dimensions can be viewed in the following figure:
Figure 6: Interaction between the dimentions
The complete PEF is given in Annexure 5. In the preliminary framework, Governance has 6
variables, Infrastructure has 2 variables, Procurement has 2 variables, IT Environment has 3
variables and Operations has 6 variables constituting the dimension. The rating scales have not
been kept in the same range, consequently the scale varies from 2 to 5 levels for different
variables. It has been done to identify the relevant points on the scale.
27
6.0 Testing of preliminary extensive framework
The framework had to be tested so as to meet the operating conditions of the small and medium
scale IT Services companies.
6.1 Data Collection
For the purpose of framework testing, nine IT services companies in Bhubaneswar were
approached, of which six participated in the assessment and feedback for the framework.
AABSyS IT Pvt. Ltd. (Aabsys), Allay Software Solutions (Allay), CSM Technologies (CSM),
Exilant Consulting (Exilant), Kalingasoft and Karak Technologies (Karak) agreed to undergo
assessment with the preliminary framework and their inputs were used to update the framework.
The list of respondents in the survey is given in Annexure 6 and the profile of the companies is
given in Annexure 7.
The results of the survey were plotted dimension-wise and the figures are presented in annexure.
Plots for Governance, Infrastructure, Procurement, IT Environment and Operations are given in
Annexure 9, 10, 11, 12 and 13 respectively. Each straight line coming out of the central circle
indicates a variable. A1, A2, A3, A6, A4, A5 and A6 are the 6 variables part of Governance. B1
and B2 are parts of Infrastructure. C1 and C2 represent Procurement. The 3 variables D1, D2 and
D3 form IT Environment. Operations consist of E1, E2, E3, E4, E5 and E6. The numbers on
each straight line indicate the scale and a dark circle next to the number determines the rating the
company got on that particular variable.
28
6.2 Analysis
We can visually compare the performance of each company on a dimension and on a variable.
Based on the comparison, we can do a qualitative analysis of companies on each dimension.
Governance
The policy frameworks are either absent or not robust in most of the surveyed companies. Except
for Exilant and Aabsys, other companies do not fare well on this parameter. Even for these
companies, their performance is not consistent on all variables. This indicates the scope of
improvement.
Infrastructure
It was expected before the assessment that small and medium companies will find it difficult to
score on this dimension, and the results from survey tally with the belief. The reason for it is that
most of them do not have their own office buildings and so they do not have the freedom to
implement their policies related to energy source and building design.
Procurement
During the discussions with the companies it was found that the variables and rating scale is not
aligned to the actual scenario. Most of them source locally and due to their small size they cannot
force a supplier to change its manufacturing processes or implement better technologies. So there
is a need to re-construct this dimension and variables to be realistic.
IT Environment
Again, in this dimension most of the companies faced difficulties in responding because many do
not have a data center and some even do not run a server. The companies which have servers use
them separately for different projects because of the issues of data security. In the case of
Aabsys, it was found that due to the business model of the company, there is no need of servers.
This dimension also requires re-structuring.
29
Operations
As the figures would show, almost all the surveyed companies are having extremely efficient
operations. This has to do with the fact that containing costs is one of their strategies to offer
low-cost solutions to their customers and therefore the performance was relatively good. It was
also found that some levels in rating scale were redundant and therefore those should either be
eliminated or clubbed with another appropriate level.
The performance of these companies on the five dimensions can be summarized in the following
table:
S. No. Company Name Governance Infrastructure Procurement IT Environment Operations
1 AABSyS IT Pvt. Ltd. L L S N L
2 Allay Software
Solutions N N N N S
3 CSM Technologies N N S N L
4 Exilant Consulting L S S S L
5 Kalingasoft N N S N L
6 Karak Technologies N N N N N
Here N = Negligible, S = Somewhat and L = To a large extent
Table 2: Performance of companies on Green IT dimensions
30
6.3 Applicability of the framework
In Annexure 7, the profile of the six participating companies is given. In an organizational
lifecycle, there are four stages – Inception (start-up), Growth, Maturity and Decline. In figure 7,
a graph is plotted showing all the six companies on their relative position on an organizational
lifecycle and their annual turnover (revenue).
Figure 7: Organizational lifecycle versus Revenue
As can be seen, Karak, Allay and Exilant are in their inception phase while Kalingasoft, CSM
and Aabsys are in growth phase. It can be observed from the figure and from annexure 9, 10, 11,
12 and 13 that start-up companies stand very low on Green IT while companies in the growth
phase have more Green IT initiatives. Exilant is a start-up company with 4 years of existence, yet
its revenues are relatively high because of its target segment. The performance of Exilant has
been very well even when it is a start-up firm. This can be attributed to the right balance between
its revenues, time of existence and adoption of clean technologies and green practices.
31
We can also look at the relationship from the point of revenue per employee and its impact on
Green IT performance. In figure 8, a graph is plotted showing all the six companies on their
relative position on an organizational lifecycle and their revenue per employee.
Figure 8: Organizational lifecycle versus Revenue per employee
We find that the relative positions of the companies remain the same in this plot as well.
From these two graphs, we can infer that the framework is applicable to small and medium scale
companies. From the framework it can be observed that the companies who have achieved
certain scale and revenue growth and as they mature, they can simultaneously improve their
environmental sustainability by incorporating Green IT strategy.
32
6.4 Conclusion
Based on the survey and relevance of the dimensions and variables for the IT Services
companies, following changes have to be incorporated in the framework:
1. The variable A5 should be moved to Procurement, and the dimension should be renamed as
Partnerships. The reason behind renaming is the acknowledgement that stakeholders external
to the company are also important in pursuit of Green IT.
2. Variables C1 and C2 should be merged because many of the rating levels are not relevant to
the practical situation.
3. Variables A4 and D1 are similar and so one of them can be dropped. Due to its nature, D1
should be moved to Governance and A4 should be dropped.
4. Overall the framework can be applied to any small and medium scale IT Services company,
but for unlisted firms variables A2 (Reporting of sustainability measures as part of regulatory
compliance), D1 (Environmental assessment of the organization) and D2 (Data center
consolidation) should not be included in the framework because they are not applicable in
majority of cases.
33
7.0 Proposed Green IT Framework
After incorporating all the changes in the preliminary extensive framework, the Green IT
Framework has been developed and it has 5 dimensions:
1. Governance
2. Infrastructure
3. Partnerships
4. IT Environment
5. Operations
Figure 9: Five dimensions in the proposed Green IT framework
34
7.1 Green IT Framework for Unlisted Indian IT Services Companies
Governance
A1 Green IT strategy aligned with Vision of the company
1 We have prepared a Green IT Strategy plan
2 We have identified goals for our Green IT Strategy as part of our vision
3 We take every opportunity to communicate our commitment to environmental
sustainability internally as well as externally
A2 Policy for Recycle/Reuse of components wherever possible
1 We attempt to reduce waste as much as possible and periodically review ways to control
waste
2 We prefer vendors/suppliers who manufacture products using recycled materials
3 We recognize employees who contribute towards our company's efforts towards reducing
waste and reusing/recycling materials
A3 Environmental assessment of the organization
1 We plan to undertake an enterprise-wide environmental assessment in the near future
2 We have already conducted an environmental assessment of the company
3 We have identified areas of improvement and have initiated plans for improvements
A4 Hazardous waste management, including e-waste
1 We try to re-use an equipment, avoiding purchase of latest equipment
2 We pass-on the equipment we do not require anymore to some other organization as part
of our charity and to prolong the use of the equipment
3 We have a tie-up with a third party who procures the hazardous waste our company
creates for proper disposal
Infrastructure
B1 Commitment to use of renewable energy, like solar power etc.
1 We have identified our offices where we can use renewable sources of energy
2 We measure the percentage of energy contributed by renewable sources as part of our
company's energy requirement and we take steps to increase this percentage year-on-year
3 Majority of our company's energy requirements, across locations, is fulfilled by
renewable sources of energy
35
B2 Policy for green buildings in new infrastructure development
1 We have incorporated a policy for developing all new offices as green buildings
2 We have one or more projects running where we are coming up with green buildings for
our offices
3 We have a plan to move majority of our workforce to green buildings
Partnerships
C1 "Green" measures conveyed to the customers
1 We include company's Green IT initiatives while introducing ourselves to existing and
potential customers
2 We communicate Green IT as a strategic differentiator for the company and as a value-
add for the customers
3 We suggest 'green' measures to our customers as part of the solution we propose to them
C2 Suppliers/Vendors with green credentials
1 We prefer sourcing our supplies from local vendors
2 Some of our vendors have green credentials
3 When faced with a choice, we prefer suppliers with green credentials
IT Environment
D1 Software architectural choices
1 Majority of our development and testing environment runs on shared servers
2 We design software applications or solution architecture in ways that reduce overall
energy consumption of servers and computers running the applications and programs
3 We have adopted cloud platform for some of our projects and are considering its
feasibility for other projects as well
Operations
E1 Pursuit for paperless operations
1 We use only email for internal communication
2 Most of the approvals for company processes take place online, only some internal
processes require printed copies for approvals
3 We keep all the important documents as online repository, rather than as printed copies
36
E2 Power consumption optimization for desktops and air-conditioners
1 We are replacing our CRT desktops with LCD monitor and laptops
2 We centrally maintain power settings for desktops and cooling temperature for air-
conditioners
3 We encourage employee-driven power management for desktops and air-conditioners.
The employees ensure these are optimally used
E3 Optimum utilization of print devices like printers and copiers
1 All printers and copiers are available on the shared network
2 We have kept default settings for printers to print double-side
3 We ensure that these devices are switched off when not in use, or after office hours
E4 Encouragement to telecommuting
1 We have provided laptops to some employees so that they have location-flexibility
2 We are building / have a network that allows employees to log on from their homes to
office network
3 We have designed the team structures and reporting systems in such a way that majority
of our employees can work from home
E5 Encouragement to Virtual meetings
1 We keep track of how much our employees have to travel for official purpose and are
trying to reduce it by incorporating appropriate technology
2 We use online tools for web-meetings, teleconferencing and videoconferencing
3 Majority of our client engagements and internal team collaboration happen online
E6 Active employee engagement in sustainability initiatives
1 We regularly conduct trainings and send internal communications to educate our
employees on the company's environmental sustainability initiatives
2 Contribution to company's environmental sustainability goals is part of performance
assessment of key management personnel
3 We have instituted awards for employees who exhibit initiative and leadership in
achieving the company's sustainability goals
37
7.3 Benefits of the proposed framework
The mandate from NF was to develop a progressive framework that could also function as an
assessment tool. One of the critical aspects is developing this framework is the definition of
small and medium scale IT Services companies, which requires segmenting the companies so
that inter-group heterogeneity can be observed. In this context, we can observe the following
benefits from the proposed framework:
The segments have been identified as Listed and Unlisted companies. The segments are
very different from each other in that even when the business models may be same,
unlisted firms have a comparatively smaller scale and they do not need to follow the
regulations required of a listed firm. Hence, the framework has taken care of this.
Indian IT Services companies are at a certain level of maturity. This means that the focus
of the framework should be on the dimensions which can fit into their present operations
and guide them to a better stage going forward. The proposed framework takes into
consideration these requirements and based on the feedback from the survey, only
relevant variables have been included in the assessment.
The framework is suggestive in nature, so it informs the companies how they can move
up on environmental sustainability. For example, from the survey results it was observed
that majority of the respondents did fairly well on Operations, but they were weak on
Governance, Infrastructure, Procurement and IT Environment. So an environmentally-
responsible company would take steps on these dimensions to improve their performance.
During the survey, the respondents agreed that they need to do more and that the
framework will be helpful to them.
The rating scale has been tested for the small and medium scale companies, but as was
seen from figures 6 and 7, companies like Exilant, who have huge revenues in their
inception stage, exhibit performance consistent with their size and operations. Therefore,
the framework is independent of these parameters and the sole criterion is the work an
organization has done in the Green IT.
38
The existing frameworks lacked variables on „alignment with company‟s vision‟, „Green
IT as customer value‟, „employee-driven Green IT‟ and „green infrastructure‟. The
proposed model takes these into consideration and during the survey the respondents
appreciated these factors.
Aabsys is one company which has incorporated many of the fundamentals of Green IT. Being a
medium scale player, it sets an example for other companies of its segment. The management
commitment is reflected in many of its initiatives and its customers also value the business they
do with the company. For detailed case, please refer to Annexure.
While the benefits of the proposed framework differentiate it from the existing frameworks, there
are still certain limitations that exist. The next section discusses its limitations.
8.0 Conclusion
The business environment has evolved over time and there is a growing realization to view the
business as part of social and natural environment and that business sustainability depends on
keeping the social and natural environments intact. IT industry has a lot to contribute when it
comes to energy management and reducing waste. Green IT is the term that denotes the
initiatives an IT organization can promote to become environmentally sustainable. This requires
deviation from business-as-usual approach and a new way of lifestyle has to emerge that values
resource-thrift.
There are many existing frameworks on Green IT, serving as guides and as assessment tools for
Green IT strategy. NASSCOM has also on its agenda to develop a framework to help Indian IT
Services companies take the road to environmental sustainability. It has a lot to do with the
image of the industry, because a cleaner and greener image has positive implications for
business.
The present study undertook an analysis of existing frameworks to develop an extensive
framework for Indian IT Services companies. Through the testing of the framework the
dimensions and variables relevant for small and medium scale unlisted IT services companies
39
were identified and an updated framework has been proposed. Among other benefits, the
framework brings focus to customers, suppliers and employees as important stakeholders in
achieving success for Green IT. A balanced performance on all the 5 dimensions of the
framework is an ideal condition and when that happens, the company will definitely achieve a
respectable image in the business and social community and it makes sense for the business
growth.
By following the framework, the Indian IT Services companies can greatly reduce their
environmental impact and enhance the positive impact on their business and bottom-line. As the
„Green IT - The Fast-track to Enterprise Sustainability‟ report by Deloitte noted, they have no
other choice.
There are certain limitations of the proposed framework which can be taken care of through
further research.
8.1 Limitations of the proposed framework
It is important to discuss the limitations of the proposed framework here. As stated in the
methodology of this study, the sample chosen consisted of only unlisted firms. The framework
has not been tested for large scale and listed IT companies. Also, the companies in the sample
varied among themselves. Karak is a start-up is very small operations and negligible IT
infrastructure. Similarly, Allay‟s scale is also small, and that reflects in its performance on the
framework. Exilant and Aabsys have their own office buildings and other respondents did not
share this feature. With a limited sample size and observed differences in the characteristics of
the participating companies, it will be better to have a larger sample size and the framework be
tested in more than one location, preferably including metro cities. This will make the framework
more robust and include inputs from more scenarios.
The framework is specifically for Indian IT Services companies, so it may not be fully capable of
assessing Green IT initiatives of a non-Indian company or an MNC. It was also observed that the
framework has certain limitations when applied to niche players. Aabsys is a provider of GIS
maps and little or no software development is undertaken by the company. So its IT environment
is very different from a company that develops software for a client. For the Services companies
40
with simpler IT environments, the framework will assess them low on the dimension. No
adjustments have been proposed in this framework. Also, companies with certain level of
revenue stream and business requirements set up their own office buildings whereas many others
may not be able to do so. A proper adjustment is required to have parity between scale and
infrastructure.
The framework is designed to assess the Green IT initiatives, but environmental sustainability
includes impacts on communities as well. The proposed framework cannot deal with the broad
requirements of environmental sustainability and corporate sustainability. It only guides the
companies to become more environmentally sustainable without being too generic.
The study thus proposes that further research can be taken up on the limitations of this proposed
framework.
8.2 Scope for further research
From the discussion on limitations of the proposed framework, we can identify the areas where
further research can be undertaken.
The framework can be made more robust by testing it with a larger sample size of unlisted
companies. There could be many other scenarios which the present study has not been able to
observe.
The preliminary extensive framework needs to be tested with large scale listed firms to bring
perspective on large size companies. Based on the understanding of their scale and operations,
more variables and dimensions can be added to the framework.
Since the framework has the ability to assess a company‟s Green IT initiatives, in the event of
differences in business models, target markets, technology incorporation etc. proper adjustments
have to be developed to create parity among the various types of companies.
Similarly, an index can be developed that gives a cumulative score based on the size,
infrastructure, type of products and services, scale of operations etc. and the ranking on Green IT
could be viewed in relation to that index. It will give appropriate comparability to companies
participating in the assessment.
41
9.0 Annexure
Annexure 1: Deloitte’s Green IT Framework
(Pak, Park, & Rydell, 2007)
Deloitte offers an eight point Green IT framework for a company to venture into environmental
sustainability. These eight points are:
DEVELOP A GREEN IT STRATEGY: Determine the long-term strategic vision of Green IT and
how it furthers the company‟s goals toward enterprise sustainability.
EVOLVE IT ARCHITECTURE AND STANDARDS: This process is driven by the assessment of
the green target environment and the IT strategies required to attain it.
MANAGE IT VENDOR RELATIONSHIPS: Develop and manage relationships with vendors who
focus on green IT products and services. Develop Green IT products and services. Provide Green
IT products and services in the context of the sustainability goals of both the IT function and the
rest of the company.
DEPLOY GREENER IT PRODUCTS AND SERVICES: Manage the deployment of Green IT
products and services. Some of the key focus areas around this process are: customer (end-user)
focus, rollout planning, effectiveness of training, and application/system support during and
shortly after deployment.
MANAGE OPERATIONS OF THE GREEN IT ENVIRONMENT: The process encompasses data,
hardware and software environments, and telecommunication capabilities. Management of the
operations environment includes establishing performance metrics, running daily jobs,
maintaining the IT systems‟ contingency plans, and supporting end-users.
SUPPORT AND TRAIN USERS: Develop and deliver training materials to end-users regarding
how to use new, greener hardware (e.g., thin clients) and software, and provide technical support
as required.
DEVELOP AND MANAGE USER RELATIONSHIPS: Build an interactive relationship with end-
users that encourages feedback and user initiated improvements as they relate to green IT.
PLAN ANNUAL IT SUSTAINABILITY MILESTONES: Plan annual milestones based on the
company‟s long-term strategic goals and correlate those goals with the direction and long-term
strategy of IT sustainability.
42
Annexure 2: Gartner’s Green IT Strategy formulation approach
(Mingay, Green IT: The New Industry Shock Wave, 2007)
Gartner provides a 9-step approach for developing a rigorous and comprehensive Green IT
Strategy:
A policy stating what environmentally sustainable IT means to the enterprise
A high-level environmental assessment of the enterprise, its supply chain, products and
services, as well as the assessment of the IT infrastructure impact
An assessment of where IT can have most impact and at what approximate relative cost
A plan of programs for the IT organization's role in improving the environmental
sustainability of enterprise operations, its supply chain, and its products and services
An assessment of the current IT environmental performance
An analysis of, and detailed plan to improve the energy efficiency of, all IT and
supporting infrastructure (for example, air conditioning and power), including the data
center, servers, networks, client devices and printing
The definition of a process and policy for assessing ongoing architectural choices and for
conducting environmental assessments of projects
An analysis of and plan for reducing and managing waste appropriately, including
disposition of PCs and more
Procurement guidelines for the enterprise about choices of suppliers based on their
environmental performance and that of their products and services
43
Annexure 3: Accenture Green Maturity Model
(Accenture Technology Consulting, 2009)
Section Dimension Variable
A Working
Practices
Many of our internal Web-based services eliminate the need for
paper
Our service architecture defines applications and the services they
provide
Our organization allows (and encourages) employees to
telecommute
B Procurement
Our procurement process requires suppliers to provide Green
credentials
Our organization utilizes local suppliers, reducing the overall
number of suppliers
Our organization maintains a complete list of IT infrastructure
components.
C Corporate
Citizenship
Our organization has a strategic commitment to reduce CO2
emissions
Our organization measures the amount of waste material we
generate
Our organization recycles or distributed IT materials for re-use
D Office
Environment
Our organization has a program to reduce the power desktops
require
Our organization discourages staff from using printers and
photocopiers
Our offices use a wireless network rather than a wired network
E Data Center
Our organization uses virtualization within the computer
environment
Our organization knows what data is stored and manages data
retention
Our organization rationalized the number and size of data center
facilities
44
Annexure 4: Forrester Research’s Green IT Maturity Assessment
(Mines & Washburn, 2009)
Section Dimension Variable
A Process and
governance
Green IT action plan
Regulatory compliance reporting
Green IT procurement policies
E-waste disposition plan
IT energy governance
Baseline energy consumption
Organizational change management and training
B Data center
Data center facility consolidation and resource
efficiency
Optimizing data center architecture
Systems and asset management
Server energy and resource efficiency
Storage energy and resource efficiency
Network energy and resource efficiency
Application portfolio management
C Distributed IT
PC and monitor device management
PC and monitor power management
Telephony device management
Wireless device management
Printer resource management
Printer device management
D Green enterprise
Virtual meetings
Virtual office
Paperless business processes
Building energy management
Green power
Green supply chain
45
Annexure 5: Preliminary Extensive Framework
The framework is divided into 5 dimensions. Each dimension consists of certain parameters, on
which the performance of your company will be measured by the appropriate position of the
company on the parameter.
Governance
A1 Green IT strategy aligned with Vision of the company
1 We have prepared a Green IT Strategy plan
2 We have identified goals for our Green IT Strategy as part of our vision
3 We take every opportunity to communicate our commitment to environmental
sustainability internally as well as externally
A2 Reporting of sustainability measures as part of regulatory compliance
1 We have an Environmental Policy
2 We provide updates on our environmental initiatives in our Annual Reports
3 We publish keys metrics related to Green IT in our communication to Investors and also
on our company website
A3 Policy for Recycle/Reuse of components wherever possible
1 We attempt to reduce waste as much as possible and periodically review ways to control
waste
2 We prefer vendors/suppliers who manufacture products using recycled materials
3 We recognize employees who contribute towards our company's efforts towards reducing
waste and reusing/recycling materials
A4 Organizational commitment to reduce its carbon footprint
1 We actively discuss internally, at various platforms, ways to reduce our company's
carbon footprint
2 We have undertaken a company-wide audit to assess our carbon footprint
3 We have identified areas of improvement and prepared an action plan to reduce our
company's carbon footprint
4 We plan and strive to become a carbon neutral company
A5 "Green" measures conveyed to the customers
1 We include company's Green IT initiatives while introducing ourselves to existing and
potential customers
2 We communicate Green IT as a strategic differentiator for the company and as a value-
add for the customers
3 We suggest 'green' measures to our customers as part of the solution we propose for
them
46
A6 Hazardous waste management, including e-waste
1 We have identified all the hazardous waste our organization produces
2 We try to re-use an equipment, avoiding purchase of latest equipment
3 We pass-on the equipment we do not require anymore to some other organization as part
of our charity and to prolong the use of the equipment
4 We have a tie-up with a third party who procures the hazardous waste our company
creates for proper disposal
Infrastructure
B1 Commitment to use of renewable energy, like solar power etc.
1 We have identified our offices where we can use renewable sources of energy
2 We measure the percentage of energy contributed by renewable sources as part of our
company's energy requirement and we take steps to increase this percentage year-on-year
3 Majority of our company's energy requirements, across locations, is fulfilled by renewable
sources of energy
4 We are a company that only uses 'green' sources for our energy requirements
B2 Policy for green buildings in new infrastructure development
1 We have incorporated a policy for developing all new offices as green buildings
2 We have one or more projects running where we are coming up with green buildings for
our offices
3 We have a plan to move majority of our workforce to green buildings
4 All of our offices are located in green buildings
Procurement
C1 Suppliers/Vendors with green credentials
1 Some of our vendors have green credentials
2 When faced with a choice, we prefer suppliers with green credentials
3 We attempt to convince our existing suppliers to achieve green credentials lest we would
end our relationship
C2 Localization of supplies
1 We prefer sourcing our supplies from local vendors
2 We are shifting business from existing vendors to local vendors
47
IT Environment
D1 Environmental assessment of the organization
1 We plan to undertake an enterprise-wide environmental assessment in the near future
2 We have already conducted an environmental assessment of the company
3 We have identified areas of improvement and have initiated plans for improvements
D2 Data center consolidation
1 We have initiated a process of identifying applications and data we can move to
centralized data centre
2 We are in the middle of company-wide application & data migration and consolidation
process
3 Majority of our applications and data resides on the central data centre and we measure
their performance using metrics
D3 Software architectural choices, like cloud computing etc.
1 Majority of our development and testing environment runs on shared servers
2 We have adopted cloud platform for some of our projects and are considering its
feasibility for other projects as well
Operations
E1 Pursuit for paperless operations
1 We use only email for internal communication
2 Most of the approvals for company processes take place online, online some processes
require printed copies for approvals
3 We keep all the important documents as online repository, rather than as printed copies
4 We run paperless operations as no company process requires printing on paper
E2 Power consumption optimization for desktops and air-conditioners
1 We are replacing our desktops with LCD screens
2 We centrally maintain power settings for desktops and cooling temperature for air-
conditioners
3 We conduct regular employee trainings/employee communication on energy management
techniques
4 We encourage employee-driven power management for desktops and air-conditioners.
The employees ensure these are optimally used
48
E3 Optimum utilization of print devices like printers and copiers
1 We have kept default settings for printers to print double-side
2 All printers and copiers are available on the shared network
3 We follow a policy of standard employees to printers and employees to copiers ratios, so
that we keep these devices to a minimum
4 We ensure that these devices are switched off when not in use, or after office hours
5 We track the papers each employee prints and monitor the same
E4 Encouragement to telecommuting
1 We have provided laptops to some employees so that they have location-flexibility
2 We are building / have a network that allows employees to log on from their homes to
office network
3 We are providing internet facility to our employees and access to company network so
that they can work from home
4 We have designed the team structures and reporting systems in such a way that majority
of our employees can work from home
E5 Encouragement to Virtual meetings
1 We are measuring air-miles of our employees and trying to reduce it by incorporating
appropriate technology
2 We use proprietary online tools for web-meetings, tele-conferencing and video-
conferencing
3 Majority of our client engagements and internal team collaboration happen online
E6 Active employee engagement in sustainability initiatives
1 We regularly conduct trainings and send internal communications to educate our
employees on the company's environmental sustainability initiatives
2 Contribution to company's sustainability goals is part of performance assessment of key
management personnel
3 We have instituted awards for employees who exhibit initiative and leadership in
achieving the company's sustainability goals
49
Annexure 6: List of respondents
S. No. Company Name Contact Person Designation
1 AABSyS IT Pvt. Ltd. Arun Patnaik MD
2 Allay Software Solutions Artee Mahala Admin
3 CSM Technologies Lagna Panda Manager - HR
4 Exilant Consulting Manoranjan Mohapatra AVP Singapore
5 Kalingasoft Srijat Mishra CEO & MD
6 Karak Technologies Braja Ballavkar MD
Annexure 7: Profile of the companies
S. No. Company
Name
Annual
Turnover
Turnover per
employee (Rs.)
Employee
Strength
More than
1 office?
Multi-nation
operations?
1 AABSyS IT
Pvt. Ltd.
Rs. 2 Crores 285714 70 No No
2 Allay Software
Solutions
Rs. 30 Lakhs 200000 15 No No
3 CSM
Technologies
Rs. 3-5 Crores 400000 100 No Yes
4 Exilant
Consulting
*$15 Million 1380000 500 Yes Yes
5 Kalingasoft ~Rs. 3 Crores 461538 65 No No
6 Karak
Technologies
~Rs. 10 Lakhs 125000 8 No No
- * $15 million = 690000000 at an exchange rate of 46
- ~ Approximations (These companies did not disclose their annual turnover)
50
Annexure 8: Case study - Green IT initiatives of Aabsys IT Pvt. Ltd.
Aabsys was established 10 years back, but moved into its new office in Infocity – Bhubaneswar
in 2008. The management had the firm belief that the design of its building should incorporate
certain elements that will make it an environmentally friendly building. As one enters their
facility, one is welcomed by a large open green area. This space was left to create greenery
around the main office building. There are trees planted all over the place to give a refreshing
look. From there on one moves towards the main building which has one side wall completely
made up of transparent glass. The orientation has been so kept that during the day, Sun is behind
the face of the building, or in other words, it is at the building‟s back. So this reduces the
heating-up of the interiors while still keeping the work place lit up from the natural sunlight.
There is also pro-active energy management by which employees ensure that the lights are only
switched on when required, and the monitors are switched off as they leave for the day. The
management made a conscious decision not to use lifts in their building thereby reducing using
more electricity. Their office is a three-storey building and the employees can easily move from
one floor to another without requiring lift. The land outside this building is inclined at an angle to
act a catchment area for the rains falling in the office area. The company harvests the rain water
to prevent water from going into the drains.
When it comes to souring of material and equipment the company does not compromise on
quality, so it procures from the established vendors. Through this, it ensures that good quality
supplies will be having good environmental performance also. When it comes to disposal of e-
waste, they either give it as part of their charity, or dispose it off to the hardware vendor.
Aabsys has developed a lifestyle of resource optimization. The company has limits on the use of
electricity, so there are caps on the consumption of electricity for a month. This saves company a
lot on the energy bill while brining a discipline in resource consumption. Employees are self-
driven in ensuring that they switch off the computers at the end of the day. Even the lights in
cabins and other common areas are switched off in the absence of personnel.
For the business development purpose, the company personnel make two to three visits abroad,
so there is very less carbon footprint due to air-travel. Also, the employee use Skype to have
internal-chat and also video-conferencing with the clients. There are just 4 landline phones in the
51
complete building because most of the collaboration, internally among the employees and
externally with the clients, happens online.
In designing the work place, proper care has been taken to given comfortable space to each
employee. The cabins and work centers are spacious. While designing the building, care was
taken to have an architecture that requires lesser beams. Lesser beams mean more floor area to
seat people. Rather than using the extra freed-up space for seating more personnel, the available
space for a work-center has been increased, giving each employee more space to work in.
There are many more salient features of Aabsys‟ work culture that promote responsible resource
utilization. The company plans to have solar panels covering its roofs one day. In the absence of
technology support in the city, the plans are on hold.
With all these environment-friendly features, does it add value to the company‟s business? Mr.
Arun Patnaik, Managing Director of Aabsys, fully agrees. He informs that whenever the clients
visit their office, they feel happy to see the spacious work place, green surroundings and friendly
work practices. So much so, that they would prefer Aabsys over a competing firm in Hyderabad.
Environment-friendly business lifestyle does benefit Aabsys to grow organically over the years
and win the trust and confidence of its clients.
Annexure 9: Dimension - Governance
Karak Allay Exilant
Kalingasoft CSM Aabsys
Annexure 10: Dimension – Infrastructure
Karak Allay Exilant Kalingasoft CSM Aabsys
Annexure 11: Dimension – Procurement
Karak Allay Exilant Kalingasoft CSM Aabsys
Annexure 12: Dimension – IT Environment
Karak Allay Exilant
Kalingasoft CSM Aabsys
55
Annexure 13: Dimension – Operations
Karak Allay Exilant
Kalingasoft CSM Aabsys
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