[WEDNESDAY, MAY 03, 2006 02:42:19 PM]
Source: Indiatimes Infotech

After scripting a globally-recognised success story, Indian IT and BPO firms have started moving away from productivity and quality to innovation, envisioning that innovative systems will help define business processes while provisioning for low-cost and high-qu
ality software.

So, most IT firms are setting up their innovation centres to create ‘business value’ by developing ideas from mind to market. One huge advantage of this is that it’s attracting young US and European IT professionals to India because of the creative opportunities offered in technology research and development.

The road to more money
A Nasscom-Mckinsey study shows that a potential of several billions dollars can be earned over and above the hugely complimentary and bullish projections that they had made for Indian IT and ITeS by and through “innovation.”

“Indian organisations have adopted and implemented quality management systems and process improvement initiatives in a proactive and fairly aggressive way. They now need to build an operating system for innovation to push beyond operational excellence and move towards business excellence,” says QAI India CEO Navyug Mohnot.

QAI India, which offers consultancy to software and services companies, has already been approached by firms operating in India and, with revenues ranging from $2 million to over $2 billion, they are looking at innovation as the strategic differentiator.

“And these companies cut across all industries – and rightfully so – since innovation is not restricted to any industry,” Mohnot stated.

Recently, the Delhi-based QAI joined hands with US-based Ideation International to bring a knowledge-based inventive problem-solving methodology – I-TRIZ – to India for the first time. For businesses, I-TRIZ means the ability to invent on demand, direct the process of innovation step by step and identify next generation breakthrough products.

The customer is future
Pointing out that the future will be more intensely driven by knowledge and sophisticated customer requirements , Nasscom chief B Ramalinga Raju said, “Customers are asking how can you improve the bottom line and time to market, and IT companies provide their specification. Earlier, we never had a situation like this. Now, everything is about business value and improving service which is possible via innovation.”

The development of innovative services is likely to be the preserve of creative start-ups or larger companies with a significant research budget, he said, adding that India needs to capitalise on a culture of innovation and IT firms should climb the value chain.

US firms jumping in too
Meanwhile, like many others, USbased Computer Sciences Corporation is also establishing a strategic innovation centre at Noida to serve its global customers. “We see a big role for India in delivering high-value work from the innovation centre, besides integrating what CSC does in India to the work being carried out internationally,” said CSC Chief Innovation Officer and President of the Global Office of Innovation, Lemuel Lasher.