Indian technology companies are donning the venture capital (VC) hat to incubate business ideas generated by employees.

With the industry maturing beyond process-oriented cost arbitrage solutions, it has become imperative for these companies to be innovative. Some want to incubate ideas that could help them enter areas they are not present in, others to create IP (intellectual property)-based frameworks and service offerings that are complementary to their existing offerings. Internal funding of ideas is useful also to retain talented employees who otherwise look to start their own ventures.