Indian IT services organizations try out the VC Model for Innovation

Posted on Updated on

Recently there was this news article talking about the Indian IT services organizations try out the VC Model for Innovation:

http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/infosys-mphasis-cognizant-sap-adopt-venture-capital-model/articleshow/8659393.cms

I hope that this time organizations are serious about it and take it to a level beyond ‘lip-service’. While the intent may be there but I really do see challenges as the mindset is still services driven and everything gets measured by ‘# of people’ yardstick. It is very difficult for companies to break away from their successful business models and take risks. The culture which is setup to support the model becomes the nemesis for new ideas and innovation.

It is interesting to note the different paths being talked about by different organizations:

  • Infosys talking about a separate subsidiary/company itself. A model that looks good, if right set of people can be brought in to run this – not the same folks from services side. This model has worked for them couple of times before e.g. OnMobile.
  • Cognizant – internal VC route. Looks good on paper but runs the risk of going no-where in organizational bureaucracy. However, Cognizant has shown good ‘execution’  skills in past, so they may be able to pull it off
  • Wipro is creating a loose community structure of selected folks cutting across verticals to identify areas in which they can innovate. Again, a good model in theory but can requires solid ownership & drive from the very top to make it work.

Let’s see, wait & watch the results of each approach.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s