Group 7_Environmental Impacts, Footprints and Sustainability Strategies of IT Sector

NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIESMUMBAI

INDIA

Project ReportOn

“Environmental Impacts, Footprints and Sustainability Strategies of IT Sector”

UNDER THE GUIDANCE OFPROF. TAPAN WAGLE

SUBMITTED BY

321 RITESH KUMAR 323 ABHRAJIT KUNDU

327 RAJESH KUMAR MISHRA 328 RICHY YATI MISHRA

340 AMIT SINGH 360 MRIDUL TYAGI

F.T. MBA 4TH TRIMESTER(2009 – 2011)

ASSIGNMENT SUBMITTED IN PARTIAL FULFILLMENT FOR THE REQUIREMENT

OFENVIRONMENTAL MANAGEMENT

FOURTH TRIMESTER EXAMINATION FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

Project Report Group 7

Table of Contents

Sl. No. Topic Page Number

1 Introduction 3

2 Macro Level Analysis 4

3 Micro Level Analysis – TCS Case Study 5

4 Conclusion 18

5 Reference 18

NMIMS University Page 2


Introduction

The Indian information technology (IT) industry has played a key role in putting India on the global map. Thanks to the success of the IT industry, India is now a power to reckon with. According to the annual report 2009-10, prepared by the Department of Information Technology (DIT), the IT-BPO industry is expected to garner a revenue aggregate of US$ 73.1 billion in 2009-10 as compared to US$ 69.4 billion in 2008-09, growing at a rate of over 5 per cent. The report predicts that the Indian IT-BPO revenues may reach US$ 225 billion in 2020.

Sustainability can be defined as has been defined as meeting the needs of the present without compromising the ability of future generations to meet their needs.

In the above diagram, we can see that there are three major aspects, i.e. Economic, Environment and Social. We can also see, there are four types of growth strategies. They are:

Viable Growth: The organization neglects social dimension in its growth strategies.

Bearable Growth: The organization neglects economic dimension in its growth strategies.

Equitable Growth: The organization neglects environmental dimension in its growth strategies.

Sustainable Growth: The organization gives equal importance to all the three dimensions in its growth strategies.



When considering the potential nature, conservation, impacts and opportunities of the information technology sector it is probably appropriate to recognize six main subdivisions:

Energy Saving Green Procurement Policy Paper & Cartridge Management Water Management Waste Management Carbon Footprint Management

We have done a macro level analysis to study what the industry is doing to maintain sustainability. We have also done a micro level analysis. For it, we have selected and studied Tata Consultancy Services.

Macro Level Analysis

The industry is giving equal importance to all the three dimensions to maintain sustainability in the growth strategies.

Economic Dimension

The objective of the economic dimension is to improve shareholder’s wealth and confidence. It can be achieved as follows:

The organization should look for new businesses and other sources of revenue. The organization should try to retain their existing customers. The organization should try to improve its bottom line by improving operating efficiency. The organization should have an excellent management and good corporate governance

in place.

Environmental Dimension

The objective of the environmental dimension is to ensure that the organization is not impacting the environment due to its activities. It can be achieved as follows:

Efficient Waste Management Reduce Carbon Footprint Switch to Renewable Energy Efficient Water Management Promote Green IT



Social Dimension

The objective of the social dimension is to ensure that the organization gives back something to the society where it exists. It can be achieved as follows:

The organization should identify society as one of the important stakeholders. The organization should encourage its employees to take part in various social initiatives. The organization should link social contribution of an employee to his or her appraisal

and add a significant importance to it.

Micro Level Analysis

Tata Consultancy Services

Tata Consultancy Services is an IT services, business solutions and outsourcing organization that delivers real results to global businesses, ensuring a level of certainty that no other firm can match. It was established in 1968 and currently it is the largest software exporter of India. It has 140 offices in 42 countries. TCS is a part of Tata group which is one of the most respected brands in India and which is known for Management Excellence and Integrity.

The above pie chart shows presence of TCS across various industries. Banking and Financial Services is in the top spot followed by Telecom and Retail & Distribution.



The above pie chart shows presence of TCS across various services. Application, Development and Maintenance (ADM) is in the top spot followed by Business Process Outsourcing (BPO).

The above pie chart shows the workforce diversity of TCS. Among all its employees, 92.8% are Indians. Among Non-Indian employees, Ecuadorians are in the top spot followed by Chileans and Americans.



Economic Dimension

The company is providing benefits to the shareholders through the following:

Global Network Delivery Model

The Global Network Delivery Model is the engine that allows TCS to provide reliable, scalable and cost-effective delivery of services and solutions. This time-tested model has helped the company achieve a client satisfaction rating of 89% for meeting quality expectations and an average project budget variation of just 3%, both figures ranging far higher than industry standards.

With TCS' Global Network Delivery Model, the customers can

Choose a sourcing strategy best suited to the most important business considerations, e.g., cost optimization, cultural alignment, proximity of location, language capabilities or risk mitigation.

Be assured of the highest quality of service regardless of the mix of services, technologies and locations.

Lower the Total Cost of Ownership (TCO) of Information Technology by managing different service streams such as consulting, IT services, IT infrastructure services, etc. with the help of a unified delivery framework.

All the processes and infrastructure have been developed from the ground up—as opposed to being cobbled together over time. The Global Network Delivery Model consists of three integrated components:

Global Workforceo Highly effective and scalable talent management: recruiting, staffing, training and

retention Integrated Processes

o CMMI Level 5 quality processeso World-class security procedureso Project Management processes and tools (iQMS, etc.)

Multi-Tiered Infrastructureo Multi-continental and interconnected global development center network (local,

regional, global model) to allow for better risk management and follow-the-sun coverage

o State of the art telecommunications networko Global collaboration tools



Solution Accelerators

TCS uses its industry experience and technology expertise to effectively develop products, tools and methodologies that help bring solutions to the fore more quickly and with higher quality. These tools, along with Global Network Delivery Model, have helped them achieve a customer satisfaction rating of 87%—a figure much higher than the industry standards—for on-time project delivery.

Over the years, the company has evolved processes and systems that capture critical client needs, survey the set of existing third-party tools and technologies, and then develop solution accelerators that help clients achieve quicker outcomes.

TCS has over 50 Centers of Excellence which track domain and technology trends and address the most critical client needs through specific frameworks or methodologies that accelerate the implementation process for third-party products.

TCS is a preferred alliance partner for most leading IT product and platform companies, including Oracle, SAP, Microsoft, IBM and HP, among others. With intimate knowledge of their technologies and products, the company builds complementary solution accelerators that help clients in specific industries such as textile manufacturing, or with specific needs (e.g., an ERP platform upgrade) that leverage the true potential of these technologies.

All its projects are delivered through a unified delivery framework, which includes a knowledge management system with learning from past projects. This learning provides an incentive to create knowledge assets from new projects that will benefit clients in the future.

Here are some examples of how TCS' Solution Accelerators help clients realize tangible benefits:

TCS BaNCS is a comprehensive portfolio of solutions for the financial services industry that provides enterprises with greater operational control, reliable technology support, continuous process improvements and enhanced speed to market.

TCS SOLAR Framework is a service-oriented framework that helps the company strategize and deliver Business Intelligence and Performance Management solutions. (Gartner Inc positioned TCS in the Leaders Quadrant for the "Magic Quadrant for Business Intelligence Services, North America, 2007" report.)

TCS Code Generator Framework (TCS MasterCraft) provides an integrated environment along with a product or application development life cycle. With a significant reuse of codes, it speeds up new application development, legacy system integration, and/or the enhancement process.

The following graphs show the performance of TCS in various financial parameters and how the company is continuously improving its shareholders’ wealth.









Environmental Dimension

The company is providing benefits to the environment through the following:

TCS Environmental Policy

The commitment to the environment stems from the Tata Group’s abiding concern for the environment and society, which is embodied in the Tata Code of Conduct. The Tata Group considers climate change to be the greatest threat affecting economic stability, vulnerable communities and the society at large. The Tata Group’s Climate Change Policy mandates that all group companies assume leadership roles in climate change mitigation in the pursuit of business aspirations and enhancement of shareholder value.

The company is in the business of providing IT services, business solutions and outsourcing. The environmental impacts result from its business operations globally and through the services and solutions that the company provides its customers with. True to the Tata spirit, TCS regards climate change mitigation and environmental improvement as essential features of its sustainable business philosophy. The company is committed to continuously benchmarking and enhancing its own environmental performance through the reduction of its carbon and ecological footprints with the involvement of its business associates and partners, thereby striving to be leaders in the industry sector. Through the services and solutions, the company endeavors to help customers improve their environmental performance toward their sustainability objectives.

The company aims to fulfill the environmental commitments through the following broad-level actions:

Integrate energy and environmental considerations in the design of new infrastructural facilities

Improve resource efficiency in operations, especially for key resources such as energy and water

Adopt the "3-R" (reduce, reuse and recycle) philosophy for all types of wastes toward prevention of pollution and dispose of "inevitable" wastes, especially electronic waste, in line with regulatory requirements or industry best practices

Promote "green procurement" to the maximum extent possible Consider stakeholder expectations on its environmental performance in the design of

infrastructure, operations, processes and solutions to the extent feasible Set, monitor and review objectives and targets on an ongoing basis toward achieving

continuous improvement in environmental performance and the overall environmental management system



Remain committed to complying with all the applicable environmental and related legal and other requirements and, wherever feasible, enhance the prescribed standards in all the countries that the company operates out of

Continue public reporting of its environmental performance and the contribution to climate change-related issues through relevant national and international forums and to other stakeholders through appropriate communication channels

Communicate the environmental policy to all employees, business associates and other stakeholders and ensure that the policy is available to the public

Review the environmental policy and allied management systems periodically to ensure their continuing applicability and relevance to its operations and evolving stakeholder expectations

Strive to support various voluntary national and international protocols, conventions and agreements on environment protection and proactively engage with governmental and other agencies in driving future environmental policy and regulation

Waste Reduction Policy

TCS is committed to reducing the environmental impact of its operations through appropriate ongoing material management. This calls for a conscious effort across TCS in the following areas:

Reduction of waste at source: All delivery centers and offices must manage operations to reduce the quantity or toxicity of waste produced. Such measures include, but are not limited to the following:

o Printing reports and documents, whenever possible, on both sides of the papero Updating mailing and distribution lists periodically to avoid overrun; use of e-

mail whenever appropriateo Giving preferential purchasing consideration to products that are reusable,

refillable, repairable, more durable, less toxic, recyclable and which avoid excess packaging.

Reuse of material wherever possible: All products and materials must be reused wherever possible.

Recycling: It is the responsibility of every associate to separate identified recyclable materials and place them in appropriate recycling containers. Office paper, corrugated cardboard and aluminum beverage cans must always be recycled in the appropriately marked container. Other materials are to be recycled whenever feasible and wherever containers are provided. Reuse is preferable to recycling.

Purchasing products with recycled content: All offices across TCS must purchase and use products manufactured from recycled materials whenever feasible. In particular, recycled paper products must be used. It is important that all recycled purchases be



reported to the Admin/Purchase Department across TCS for record keeping and reporting purposes

Implementation

The Office of Waste Reduction and Recycling will work with the Recycling Monitors and the delivery center associates to make recycling and waste reduction as convenient as possible. Active participation will trim unnecessary waste disposal costs, meet mandated waste reduction requirements and will help TCS meet its commitment to reduce the negative impact of its operations on the environment. This policy must be made available to all associates of the Admin and Purchase Department.

Energy Saving Initiatives

TCS’ energy saving initiatives focus on ensuring strict operational discipline and installation of energy efficient equipments as below:

Switching on the AC half-an-hour late every morning and turning it off half-an-hour earlier in the evening

Regulating temperature in a close band (24+1o C) Replacing tube-lights with CFL luminaries VFD installation Minimizing use of halogen and other energy intensive lighting Switching off of monitors when not in use through central programming

Green Procurement Policy

The company has the following green procurement policies in place:

Procurement of low energy consumption desktop configuration from Energy Star Partners

Purchase of TFT monitors instead of CRT monitors whenever existing CRT monitors are replaced

Procuring laser printers with GREEN functionality Procuring servers with low voltage CPUs and low wattage storages and server racks with

efficient cooling system Server racks with efficient cooling system

Paper and Cartridge Management Policy



The company has the following paper and cartridge management policies in place:

Creating awareness about the importance of saving paper Controlling supply of paper at printers and copier machines Displaying posters and sending out mailers to highlight the need for saving paper Making soft copies the official form of communication wherever feasible, especially for

most employee self service procedures, such as applying for leave

Water Conservation Policy

The company has the following water conservation policies in place:

Dual flushing system in toilets Taps with variable output and sensors Drip irrigation system Throttling of valves Regular maintenance of water pumps

The following graphs show the performance of TCS in various environmental parameters and how the company is continuously reducing its impacts towards environment.







Social Dimension

The company is providing benefits to the society through the following:

TCS Maitree: “Maitree”, the association of employees and families, reaches out through active employee participation. Maitree also contributes toward improving employee health by providing in-house doctors, organizing medical camps, and initiating programs like ‘Serenity’ stress management among employees. In addition, the Maitree platform includes music, dance, trekking and sports which helps develop team spirit and bonding within the organization.

mKrishi: mKrishi, the mobile based agro advisory system, enables farmers to access agriculture based advice in local languages. Using graphic and voice formats to purvey information, the system is being run on a pilot basis at three locations in Maharashtra and at one site in Uttar Pradesh before the commercial launch in mid 2009.

InsighT: InsighT, a 72-hour IT and soft skills camp for pre-university students, deploys the Case Study methodology to provide students experience with real life projects. Since 2007, InsighT has covered over 1500 students in Chennai, Coimbatore, Kochi, and Mumbai. InsighT was also conducted in January 2008 and 2009 at Sydney in Australia.

CBFL: The Computer-based Functional Literacy (CBFL) program has served over 1,20,000 learners in pilot studies all over India, with offerings in nine Indian languages and development of teaching in Arabic and Spanish now underway. CBFL V.2 facilitates teaching one language through the medium of another.

Conclusion

In conclusion, we can say that the company is giving equal importance to all the three dimensions and in the process, it has become a sustainable organization.

Reference

TCS Corporate Sustainability Report


Documents

Group 7_Environmental Impacts, Footprints and Sustainability Strategies of IT Sector