Topic1-AmartyaGhosh

We are seeing that the indian companies are doing

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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 drivers identified: • 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 initiatives: 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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