India Green IT And Sustainability Spending To Reach $70 Bn By 2015

By 2015, India’s spending on green IT and sustainability initiatives will double from $35 billion in 2010 to $70 billion in 2015, according to Gartner, Inc. In 2012, green IT and sustainability spending in India will total $45 billion.

In the Gartner report “Hype Cycle for Green IT and Sustainability in India, 2012,” analysts said green IT and sustainability are emerging as key concerns for businesses, investors and technologists across industries and policymakers in India. Though many technologies are available, government policies will eventually drive green IT and sustainability solutions adoption by Indian enterprises.

“For the first time, a chapter on sustainable development and climate change was introduced in the government’s annual Indian Economic Survey, 2011-2012. The survey has suggested making lower-carbon sustainable growth a central element of India’s 12th five year plan, which commenced in April 2012,” said Ganesh Ramamoorthy, Research Director at Gartner.” This will set the tone for future policy initiatives and regulatory measures from the Indian government that will drive the implementation of some technologies - such as advanced metering infrastructure, carbon capture and sequestration, intelligent transportation system, solar energy technology, building integrated PV systems, ecolabels and footprints, combined heat and power technology, e-waste, distributed power generation, and water management - necessary to usher in low-carbon sustainable growth.”

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As enterprises embrace IT to improve productivity and drive growth, penetration of ICT infrastructure has been growing rapidly during the past decade, as has the energy consumption and resulting carbon emissions of India’s ICT infrastructure.

Apart from the ICT industry, the banking and financial services, hospitality, manufacturing (such as automobiles), pharmaceuticals, and other industries that have significant exposure to the export markets, will also join the green IT and sustainability trend early in India. In other industries, addressing energy, carbon, resource efficiency and sustainable economic development is currently still in the early stages.

Linking integrated solutions through resource-efficient technologies and a full range of operational technology in urban areas and smaller cities will accelerate the development of sustainable processes and infrastructure in the future.

“A few leading organisations in the country are beginning to implement green IT and sustainability solutions and to incorporate them into business operations. However, this is through a piecemeal approach that relies more on the hype surrounding the solutions than on the real benefit of the solution to the organisation’s sustainability and green IT vision. Many Indian organisations still lack the strategic focus that comes with a clear understanding of the core issues and key technologies that bring about real change in the vision for sustainability and green IT in an organisation,” said Ramamoorthy.

Gartner presents its views on the state of adaption of some of the most innovative and significant technologies and business models relating to green IT and sustainability in the Hype Cycle report for green IT and sustainability in India (see Figure 1). The report describes and analyses some of the emerging IT- and OT-related technological solutions — and adaptations of existing technologies — that can deliver value to Indian businesses.

“While awareness of green IT and sustainability issues is very low in Indian organisations, the increasing global focus on energy efficiency, energy security, green IT and sustainability issues is now causing the executive leadership in the technology sector to track, report and manage sustainable and resource-efficient business practices,” Ramamoorthy said.

“Simultaneously, the operational cost of making energy-efficient resources available is pressuring CIOs in Indian companies to develop strategies to optimise ICT utilisation — including companywide energy management — while not compromising on the growth or deployment of newer technologies,” Ramamoorthy said. “We are already beginning to see the use of energy-efficient technology in data centers, manufacturing facilities and public buildings in India. While home energy management solutions in residences are still in the very early stages, they are increasingly tested in newly-built urban areas and gated communities.”