The Hindu Business Line : `Out-of-the-box' thinking

Technology companies are viewing those on the other side of the digital divide in various avatars — as beneficiaries of their charity, as their future pool of sticky employees, and also as their future market. They are now trying to create models that can be all-three-rolled-into-one.

Nobody can say that technology companies in the country are not sharing their success with the less privileged. Free computers in small towns and villages, free computer training, voluntary training by employees of the company, monetary contribution from employees, free meals for children, grants, tie-ups with NGO programmes, tie-ups with government organisations and programmes... .technology companies in the country cannot be accused of shirking their Corporate Social Responsibility, or CSR as it is called.

But being technology companies, perhaps, and driven by terms such as innovation, lateral-thinking, scalability and feasibility, there is a feeling in the industry now that this manner of `delivery model' is too inadequate, too piecemeal.

This is an industry that has created new models of business, which talks of systems and processes that can scale manifold. Can it not bring this expertise to its social service activities too, instead of doing the run-of-the-mill things that other industries do?

Beyond philanthropy

At an industry level, there is a perspective change happening on the approach to this activity. "The problem of the digital divide is not unusual in a developing country, but what is unusual is that the experience and skills available in technology are that of a developed country" says Saurabh Srivastava, Chairman, Nasscom Foundation.

The Nasscom Foundation has been set up to lead information-communications-technology development from the national perspective.

The perspective change that is being thought about is this, says Srivastava: "Can we create a new business model that is not just philanthropy? If I create a model that creates money, then the model can do more. Can we access a class of capital for people? Can we look at something that is not charity, but which is not looking at returns of 30 per cent either? Can we have something nominally viable?"

"The input management required for this is not very different from what we do in venture capital," says Srivastava (who founded Infinity Technology Investments and later Band of Angels, a group of investors interested in funding fledgling companies with requirements as small as between Rs 50 lakh and Rs 2 crore).

Profit needn't be a bad word

Profit need not be a bad word. In fact, the advantage of having something profitable is that more of the good work can be done. The other attraction, says Srivastava, is that a lot of people would see opportunity in it and those who are not philanthropic too would be inclined to participate.

The idea is not to have people do one little project and then forget about it.

By next year, the Nasscom Foundation will actually put these thoughts into action and in the mainstream, says Srivastava.

At Nasscom's recent annual event this year, there was considerable emphasis on technology and social development. There was a track called `ICT and Development'; another on `ICT - working towards Bharat Nirman (government of India's programme)'; another called `Public-private partnerships for sustainable development' and yet another `Creating sustainable businesses in rural India.'

Rural BPO model

Some unique models have already emerged independent of any industry programme. The Byrraju Foundation's GramIT programme has generated a rural BPO model.

Satyam Computer Services now outsources some internal processes in human resources, bookkeeping and administration to one such rural BPO near Beemavaram in West Godavari district.

According to B Ramalinga Raju, Chairman, Satyam Computers, the village employees of this BPO are more conscientious and devote more time at work than their city counterparts.

The Foundation's model is what it calls a `Build Own Operate Franchise (BOOF)'. Employees go through an intensive training period at no cost at GramIT centres operated by the foundation till the centres attain financial stability.

After that the centre becomes a cooperative society through a process that "derisks stakeholders, employees, investors and customers." This programme is in operation in 150 villages in Andhra Pradesh.

The objectives of the GramIT programme are to employ rural people in the ITES (IT-enabled services) industry and to create profit for the entrepreneurs or cooperatives running the BPOs.

Each GramIT is a 50-seater that can accommodate 100 persons in two shifts. Each is provided with 512 kbps connectivity with ISDN back-up (sometimes VSAT too), connected to the electricity grid with UPS as well as power generators for back up.

Overall, the infrastructure is on a par with that of city BPOs, according to a Byrraju Foundation report.

The Microsoft example

A simple charity model cannot be self-sustaining, but a profitable one can be. Additionally one can get micro grants more easily from banks for a profitable model, said one of the participating officials at Nasscom 2006.

The Nasscom Foundation itself has roped in several `partners' for its ICT and social development programme, the partners as varied as United Nations Development Programme, UNICEF and private corporate Microsoft.

In fact, some multinationals such as Microsoft have been right in the forefront when it comes to programmes that address the semi-urban, rural, non-English speaking people in the country. And not just as a charity provider.

Apart from the grants that Microsoft has made, to the tune of more than $1.15 million in the country, Microsoft is frequently coming up with software that addresses the needs of this section.

Recently, as part of its efforts at bringing an `affordable local language computing solution for India" the company launched its Windows XP starter edition exclusively developed for India.

Says an official associated with e-governance: "You will seldom see an e-governance debate or seminar without Microsoft as one of the participants. These companies are thinking far, far ahead. Companies are looking beyond charity, they are also looking at how to penetrate into new markets for themselves. They are looking for profits of course, but not profits as high as they would otherwise. To that extent, this activity also strikes a mean between charity and viability."

There is more respect and responsibility that goes with a model that needs to bear profits, a pure beneficiary of charity is often not charged enough about matters, according to NGO experts.

And this is the psychology that software companies hope to seize, building reputations, employees and markets for themselves.

kripram@thehindu.co.in

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