IT/ITES

Creating Next Generation Technologies

India’s IT sector is pioneering cutting-edge technology, helping global corporates to launch a fascinating new range of products and services. Shivkamal highlights the achievements of the sector

32 N the 1990s, few countries took notice of ’s potential to emerge as a dominant player in the Informa- Ition Technology (IT) sector. By 2007, the Indian IT industry registered record revenues of $39.6 billion. The key to this success has been innovation. Since the beginning, the Indian IT industry has shown tremendous innova- tion quotient, both in the services space and product domain. This innovative approach has now prompted the National Association of Software & Services Companies (Nasscom), the premier trade body of the Indian IT industry, to forecast $50 billion revenue in a couple of years. A number of Indian IT services and product companies have grown into technology giants such as Tata Consul- tancy Services (TCS) of the Tata Group, India’s largest software exporter, by banking on innovation. It is followed by Bangalore-based Infosys Technologies, which has the highest market capitalisa- tion among Indian IT companies. Third in the list is Wipro Ltd, a traditional product company turned IT behemoth. These three companies are making waves worldwide by acquiring rivals to increase their geographical footprint. Interestingly, their growth has been propelled by innova- tive services and products, which have become popular among its clients. Infosys, which is known for its IT and IT-enabled services, has developed

a product called Finacle for the banking DPA sector. It empowers banks to transform MEETING GLOBAL CHALLENGES: The IT/ITES sectors have been catering to the needs of international clients their business leveraging agile and new generation technologies. This modular comparing the retail banking platform Reddy, has launched several chips in solution addresses the core banking, market, Forrester evaluated fi ve global network connectivity and digital commu- treasury, wealth management, consumer retail banking platform vendors. nication. and corporate e-banking, mobile banking, According to the report, “Infosys earns Reddy, who proudly claims that his is alerts and web-based cash management the top slot in the fi rst Forrester Wave the fi rst Indian chip fi rm to be listed on the requirements of retail, corporate and of retail banking platforms. Finacle is a stock exchange, says his chips are used universal banks worldwide. good shortlist choice for banks that need in set-top boxes and data communica- Finacle has been architected out of a banking platform with comprehensive tion devices. His silicon fi rm is based on years of experience with global banks functionality; want a strong multi-channel a fabless model on which most small chip and offers several powerful and differen- solution as part of the banking platform; or companies operate. In this model, the tiating features, making it one of the most are seeking an agile banking platform that company designs, develops and tests the comprehensive, fl exible and scalable is able to cope with changing business chips but out-sources its manufacturing solutions in its class. Initially, Finacle needs.” requirement from fabs (chip manufac- remained a little known product. But it Semi-conductor companies in India turing units). Moschip’s clientele include gained acceptance over the years. are also developing innovative world-class electronic majors like Panasonic and In the recently released Forrester Wave products and working on cutting-edge Toshiba. report – Retail Banking Platforms 2006 technology. Hyderabad-based MosChip Bangalore-based Beceem Communi- (November 2006) – Finacle emerged as a Semiconductor Technology, started by cations, a start-up fi rm, has developed the leader. In this study, the fi rst of its kind, Silicon Valley veteran K Ramachandra world’s fi rst chipsets for mobile WiMax

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The spirit of innovation and the success tasted by innovators has prompted Indian techies to turn into world beating entrepreneurs. DPA RAPID STRIDES: Indian IT fi rms are attracting interest from hi-tech companies platforms. (WiMax is wireless technology range of peripherals and original equipment market. These products address a wide that provides wireless broadband connec- manufacturers’ mobile platforms including range of needs. For instance, Zen Technol- tivity over long distances up to 50 km). headphones, headsets and adapters, ogies Ltd, Hyderabad, promoted by a Within a short span, Beceem, co-founded remote controls for portable music players, group of technocrats and senior retired by a former naval offi cer Arogyaswami and mobile phone solutions. offi cers from the security services, has Paulraj, has attracted a lot of interest from The company made rapid strides in indigenously designed, developed and big tech companies. such a short period that it became a target manufactured simulators. Intel Capital, the invest- for acquisition. It was acquired by SiRF The fl agship product of the company ment arm for Intel, has made a substantial Technology, a Nasdaq listed US company. is ZEN Small Arms Training Simulator (ZEN investment in Beceem. Incidentally, Intel, The spirit of innovation and the success SATS). ZEN Interactive Small Arms Training which promoted WiFi technology on a tasted by innovators has prompted Indian Simulator (iSATS) is a software intensive large scale with its Centrino chip, is now techies to turn into world beating entre- computer based training aid meant to help pushing for WiMax. preneurs. After serving global giant Texas trainee’s perfect advanced marksmanship This is just a sample of next genera- Instruments, Srini Rajam ventured out skills including skills based on judgment tion innovative products being developed on his own. Today, his company – Ittiam and refl ex. by Indian companies. Many companies Systems – has become a leading intel- This innovation has made the country are working on cutting-edge technology lectual property licensing fi rm in the semi- self-reliant in the technology of weapons and creating new chips for the latest conductor world. simulators. The system provides trainees products. Ittiam Systems has successfully with life-size targets, real-life scenarios, Impulsesoft, another player from India’s blended services and products business. and other such practice sessions, which Silicon Valley, Bangalore, has to its credit, Launched in April 2001, Ittiam, a digital will enhance their refl ex and judgment unwiring Apple’s mobile music player i- signal processor (DSP) systems software skills. Well-received by paramilitary forces pod. In fact, it was Apple, which turned to fi rm, designs applications such as and armed police, this innovation has been Impulsesoft, seeking to develop wireless streaming video, portable media player patented in India and abroad. headsets for i-pod. and digital still camera. They run on DSP There are also innovative entrepre- Founded in 1999, Impulsesoft is recog- (chips, which go into a variety of devices neurs, who give up MNC jobs to promote nised as an innovator in Bluetooth stereo like mobile phones, digital cameras, a social cause. Suresh Vazirani, for solutions worldwide and is an associate Internet modems and network devices). instance, has done that by joining MRA member of the Bluetooth Special Interest Among its 40 customers are names like (Moral Re-Armament) for creating aware- Group. Its software powers a range of Sony, Premier, VEO and semiconductor ness amongst the youth about the need mobile phone and consumer products fi rms like TI, ST Microelectronics and to build a great nation. And he showed the including naviPlay, the fi rst Bluetooth Silicon Labs. way by Building Transasia Bio-Medicals, stereo adapter and remote control The Indian IT sector has not only devel- from scratch to a global leader. designed specifi cally for the i-Pod. The oped innovative IT products for global Fired by the vision of its founder, the company’s software is optimised for a customers, but also for the domestic R&D team of 25 engineers introduced

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INDIA IS DRIVING GLOBAL INNOVATION including Crompton Greaves, Electronics Corporation of India Ltd (ECIL), HFCL INDIA has established itself as a shown strong revenue growth over the and Shyam Telecom Ltd. One of most world leader in the IT-ITES arena as fi rms years largely led by exports, investments successful and early installations of have successfully dominated the fi rst in deep domain knowledge and IP creation corDECT has been in the African island two phases of evolution characterised would help fuel this growth story, adds nation of . corDECT is opera- by export-led growth driven by factor Narayanan. “To sustain high levels of tional in the city of Tamatave (formerly arbitrage and gaining domain experience growth, the industry needs to focus on Toamasina) for over two years now, and and superior delivery capabilities. cultivating and nurturing an ecosystem subsequently it has been installed in the The industry, however, is now entering of innovation and institutionalise it,” cities of Sambava and Anthala. the third phase where fi rms need to he points out. According to Nandan Fiji Telecom installed corDECT to serve recognise and act on the importance Nilekani, ceo, Infosys Technologies, “we its subscribers in the island of Ba, far away of ‘innovation’ for maintaining their are faster, better and cheaper than the from the capital Suva. corDECT has also competitive edge. Traditional factors legacy players.” This would imply that been tested by telecom standardisation that led local fi rms through the fi rst two the Indian IT services are giving the run bodies in , , Europe (ETSI), phases are being fast eroded by rising for the money to international giants like Kenya, , Tunisia and Nigeria and factor costs, geographical and cultural IBM, Accenture, HP and are competing was cleared for induction in their respec- affi nity to other destinations, global at the same level. This would serve as tive networks. Currently, there are fi eld fi rms building sizeable Indian capabilities one of best examples of innovation. trials underway in Iran, and Yemen. and future governance and management Dr Sridhar Mitta, ceo, e4e, says four Commercial corDECT systems are also challenges for fi rms if they follow the elements are driving India into this cycle operational in Argentina, Brazil, Tunisia current linear expansion model. of innovation: people, market, track and Nigeria. Outside of India, corDECT “Focussing on innovation besides record and scaleability. The diversity of differentiating the Indian IT-ITES industry India with multiple languages, a large will also allow it to tap additional revenue English-speaking population and rapid streams worth $50 billion by 2012,” urbanisation is fueling this process of Semi-conductor says a report by Nasscom, the premier innovation. trade body of the Indian IT industry. IBM India managing director Shanker companies in India According to Lakshmi Narayanan, Annaswamy notes that India “is driving are also developing chairman, Nasscom, “innovation is global innovation.” The reasons also are the top priority for global corporations not far to see as people are becoming the innovative world- today – for growth, differentiation and source of innovation with MNCs moving leadership. If the Indian IT industry can from labour arbitrage to mission critical class products and further enhance its ability to service this innovation, while Indian companies are top priority of global corporations, the migrating up the value chain to offer working on cutting- market opportunity is inestimable.” high-end services. While the Indian IT-ITES industry has edge technology. in quick succession a series of globally associated with display systems like accepted products that meet the need for quality of colour, incompatibility with is manufactured under license by BBS quality blood analysis. The latest is ERBA streaming video and developed “Outdoor Access in and by Omniacom XL-600 (Automated Random Access LED Animation Display Boards”. in Tunisia. corDECT will be manufactured Analyser) with throughput of up to 600 corDECT is a major Indian innovation soon locally in Brazil too. tests/hr and capability to perform 213 in the area of broadband wireless commu- Such innovations have brought MNC reagent tests. nication. It is the only Wireless Local Loop IT fi rms to set up their R&D centres in India is a cricket crazy nation. But just system that provides simultaneous Voice India. US-based Portalplayer’s centre 20,000 people watching a cricket match Telephone and Internet at 35/70 kbps in Hyderabad is developing a chip for made news, because they watched the to every subscriber. It has the cheapest Apple’s next Wifi i-Pod; Insilica, promoted World Cup in one place, at Chennai’s capital investment and operational cost by Vinod Dham, father of the Pentium Marina beach, on a giant 12x20 ft digital amongst all the Wireless Local Loop chip, is creating new microprocessors video screen. systems. for wireless and multimedia devices This is one of the innovative products It is the brain child of TeNeT group of and Advanced Micro Devices (AMD) is developed by MIC Electronics Ltd, Hyder- the Indian Institute of Technology, Madras, working on its new server chip. There are abad, a R&D based company, promoted and Midas Communication Technologies several other examples to indicate that by technocrat Dr M V Ramana Rao. The of Chennai. In India, corDECT is manufac- India has indeed emerged as the global fi rm overcame limitations traditionally tured under licence by a few companies R&D hub for innovative products.

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