Frontline IT companies have seen a 10-fold increase in the number of patent applications made over the last five years, an indication of the growing push towards automation and higher margin offerings.
Data from industry body Nasscom show that Tata Consultancy Services, Infosys, Wipro and others have filed for about 1,500 patents in fiscal 2014 against 150 in 2009.
Such a move is an important part of their non-linear growth strategy, where the companies are trying to de-link their revenue growth from the number of people added. This is expected to improve their profitability in a changing business environment.
R Chandrashekhar, President of Nasscom, believes that the growing number of technology start-ups, especially those that are focused on technology products, have contributed to this trend.
“Higher number of patents increases the value proposition of this industry as this brings global service delivery capabilities, combined with innovation of the highest order. The industry would not have been able to maintain its position globally if not for these developments,” said Chandrashekhar.
TCS, for instance, had filed for 443 patents last year, of which 33 were granted, the company’s annual report.
During the same period, Infosys applied for 79 unique patent applications in India and abroad.
Patents are developed to protect the research cycle and keep it moving. Without patent protection, research would come to a halt.