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Unformatted text preview: iggest testimony for this is arrival of the
US and UK politicians with the intention of revival of their country’s economy.
We are seeing that the Indian companies are doing well owing to certain factors in the country,
external to the country and some internal strength. These conditions will be analyzed and it will
be seen what are the factors which will help Indian companies and what will not help them. Drivers and Barriers for Indian Companies’ Global Ambitions Over the years, authors and industry experts have talked about how Indian companies are
growing in the global arena and as a result going on an M&A spree. The following are the
• The Phenomenon of Outsourcing – Indians are now renowned for the outsourcing business
in IT and Business Processes. The ability of Indian employees to learn the business Page 4 of 18 processes, IT processes and more recently the Knowledge services (KPO) which has further
raised the expectations from the Indian companies.
• Presence of Credible Businessmen – Indian corporates are blessed by globally renowned
businessmen who were not only known for business acumen but also for the reputation of
being most ethical. Few renowned names are Narayan Murthy, Ratan Tata, Anand Mahindra,
Mukesh Ambani, etc. Owing to the respect towards some of these leaders, world renowned
companies tend to do business and many a time their business acumen tend to rule the
business world • Low Cost Innovations – India has always been an incubator for low cost solutions –
Outsourcing, Medical Tourism and more recently, $35 laptop. The most important innovation
in this case has been TATA Nano which is worth Rs. 1 lakh. It is these innovations at time of
economic crisis, which could further strengthen Indian companies in the global arena in the
long run. • One Billion People – When foreign companies see the Indian market which has one billion
people, their eyes lit up to the prospect of selling their products and services to them.
However, to cater to them they need help from Indian companies owing to infrastructure
restrictions and government norms. In recent past, companies like Walmart, Spencer, AIG,
Allianz, Telenor, NTT Docomo, etc. have all entered the Indian market with Indian
companies. At the same time, the same people act as good, efficient and cheaper human
resources which further reduce the costs of Indian companies. These same human resources
become attractive R&D investments for the foreign companies. • Government Initiatives – The government of India has played a special role through these
o Liberalization and FDI relaxation – This was the first step towards attracting foreign
interest and also, empowering the Indian companies to go abroad
o Floating Exchange Rates – Made it attractive to invest in India and visit India to
strengthen tourism industry Page 5 of 18 However, there are some factors which could become roadblocks in the road to Indian
companies’ dominance in the world.
• Rise of China, Eastern Europe and Latin America – All...
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- Winter '14