Indian giant backs RFID

In a statement issued earlier this week, the Indian company said it will start marketing a new offering based on radio frequency identification (RFID), a technology to keep tabs on stock levels through microchips embedded in individual products. Beyond slashing labour costs associated with stock checking, the advanced tracking capabilities of radio frequency-based systems, such as the ability to tell an item’s origin, time of purchase and expiry date, will enable companies to respond quickly to changes in the demand and supply chains.

Infosys said it will now provide consulting services to help clients identify pilot RFID projects and develop a plan for phased adoption. According to published reports, the firm will also develop customised software to help customers integrate radio frequency networks into their current IT infrastructure.

"Enterprises across verticals face many challenges in real-time visibility and tracking of physical movement of goods, assets and personnel," said Nandan M Nilekani, Infosys’ chief executive officer. "Our customers can now look to us to provide the cost reduction, improved customer service and streamlined operations with the launch of our RFID solution and expertise."

Radio-frequency systems may be a nascent technology, but they have drawn significant interest in the past year, most notably from the retail sector.

In the US, companies like Gillette, Wal-Mart Stores and UK-based supermarket chain Tesco are already working to install specially designed shelves that can read radio frequency signals. In Singapore, the National Library Board has already implemented an RFID-based borrowing and returning system at all 25 branch libraries across the island.

Despite the merits, the high costs of radio frequency tags and possible signal interference remain as obstacles to broader adoption. In addition, consumer groups have also vehemently protested against the of RFID chips for fear that the technology will invade individual privacy and allow unauthorised government surveillance.