Green IT in IT services firms: a strategic blog post for leaders
Julie Sergent
Content manager
January 30, 2025
5 min
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IT services firms face a dual challenge: meeting growing demand for advanced technologies while reducing their environmental impact. For IT leaders, adopting a Green IT strategy is no longer just an environmental responsibility—it is a competitive differentiator, a cost optimisation lever, and a regulatory necessity.
In this article, we explore the opportunities presented by Green IT, its impact on IT services business models, new regulatory requirements in Europe, and evolving client expectations. We will also outline practical steps for IT leaders to build a sustainable strategy.
The IT sector is at a pivotal moment. On one hand, clients demand innovative solutions integrating artificial intelligence (AI), cloud computing, and automation. On the other, these technologies consume significant amounts of energy, contributing to a growing carbon footprint.
"The issue is not the current digital footprint, but its exponential growth. In the next 10 to 20 years, the IT sector could outweigh transport in terms of emissions. This is staggering." – Thomas Breuzard, Co-President of B Lab
Green IT provides a holistic, sustainable approach, integrating optimised infrastructure, eco-designed software practices, and energy-efficient operational strategies. For IT services firms, this requires restructuring the design, development, and delivery of services to balance innovation with sustainability.
✅ Cost Reduction – Lower energy consumption, optimised infrastructure, and improved operational efficiency.
✅ Regulatory Compliance – Anticipating European environmental regulations to avoid compliance risks.
✅ Competitive Differentiation – Green IT is now a key advantage in bidding processes and client relationships.
Beyond these benefits, Green IT is transforming IT services business models and creating new revenue opportunities.
While Green IT is often perceived as a cost-cutting strategy, it is in fact a value creation driver and a revenue diversification opportunity.
Some IT firms are now offering specialised consulting services to help clients migrate to sustainable cloud infrastructures, optimise AI algorithms, and align IT strategies with ESG (Environmental, Social, and Governance) standards.
Increasingly, IT services firms integrate low-carbon IT solutions into their offerings to meet the sustainability requirements of large corporations and public sector contracts, as seen with Atos.
Rather than traditional pay-as-you-go models, some IT firms are introducing energy-performance-based pricing, where clients pay less if they optimise their consumption.
Example: AWS offers low-energy Graviton servers, reducing environmental impact by up to 60% (Source: AWS Graviton Blog).
IT firms now integrate CO₂ tracking tools into their solutions, allowing clients to measure and offset their IT footprint.
For IT firms, the key takeaway is clear: Sustainability isn’t just an obligation—it’s an opportunity to create differentiated, high-margin services.
Octo Technology, a leading IT services firm, has achieved remarkable success in Green AI development. Their approach includes:
These efforts have resulted in up to an 80% reduction in model size and energy consumption, proving that Green IT fosters both sustainability and innovation.
💡 Switching to renewable energy-powered data centres.
💡 Implementing advanced cooling systems to reduce HVAC energy consumption.
💡 Optimising server resource allocation to avoid unnecessary energy use.
💡 Using energy-efficient algorithms to reduce processing requirements.
💡 Optimising database design and data structures.
💡 Developing energy-conscious applications.
💡 Designing repairable and upgradable IT equipment.
💡 Implementing recycling and refurbishment programmes.
💡 Partnering with environmentally responsible hardware suppliers.
The European Union is enforcing stricter sustainability regulations for IT. IT services firms must anticipate these changes and turn compliance into a competitive edge.
✅ Corporate Sustainability Reporting Directive (CSRD) – Large businesses must report their carbon emissions, including IT-related impacts.
✅ Ecodesign Regulation – Mandates energy efficiency standards for digital and IT equipment.
✅ Green Public Procurement (GPP) – European public contracts now include strict environmental selection criteria.
💡 Develop Green IT offerings aligned with EU standards.
💡 Anticipate regulatory changes and offer compliance-focused IT services.
💡 Position as a strategic partner for enterprises prioritising ESG compliance.
While many firms view sustainability as an internal efficiency strategy, the real driver is client demand.
Large enterprises and public-sector clients are prioritizing sustainability in vendor selection. IT firms that ignore this will lose tenders to greener competitors.
Example: BNP Paribas and L’Oréal now include Green IT requirements in their supplier assessments.
Clients increasingly expect IT service providers to deliver solutions that enhance their sustainability efforts, such as:
The message is clear: Sustainability isn’t optional—it’s a key driver of client retention and competitive differentiation.
Green IT represents both a challenge and an opportunity for IT services firms. By embracing sustainable innovation, companies can reduce their environmental impact while driving business value. For C-level executives, success requires a strategic, holistic approach encompassing infrastructure, software engineering, operational practices, and client solutions.
As climate action urgency grows, Green IT will become a key differentiator in the IT services market. Firms that invest in sustainable innovation today will be well-positioned to lead in the low-carbon economy of tomorrow.
To learn more about implementing Green IT practices in your organization, explore our last white paper on: AI, a death sentence for professional services?
