In the last 10 years, India has emerged as a growing economy and a power in the Asia and continues to be a rising star in the international business community, India has unlimited opportunities and is becoming the land of opportunities.
Since the Liberalization of the Indian Economy in the early 1990, the trade laws in India have been revised to allow significant foreign investment and trading with foreign companies and other nations has become relatively easily. The new regulations have opened the doors for Indian Business to market their services outside India. This helped the Indian Businesses as they began to partner with large companies including a number of Fortune 500 companies by providing quality services at low costs.
As we all know that the water flows from an high level to a low level, so do the costs ! Business in the high cost and developed countries took a note of the low cost service providers and manufacturers as well as manufacturing opportunities in India and are looking at lower their costs of operating business in these high cost countries ie, USA, UK and other European countries.
While more and more service are being provided by the Indian Companies or the Multi-nationals companies in India, the costs of services, salaries, real estate and property costs are increasing in India due to the exponential increase in the demand and is causing a strain the te infrastructure. However there cost differentials are still quite high between USA & India and this will continue to be so till the next few decades.
With the liberalization during the early 1990s the doors opened up for the Indian businesses to explore the opportunities with the business across the world. The Y2K fear during the late 1990s compounding with the gigantic nature of the impact to the business and the scope of work prompted the businesses in USA and UK to look for cheap resources outside. The newly available IT Services in India came as a critical resources to the businesses.
Together with the Internet boom during the same period, IT companies like INFOSYS, TATA CONSULTANCY (TCS), WIPRO, SATYAM etc.. opened their doors to the business in the USA and Europe. Initially during the mid to late 1990s the businesses in USA and Europe were looking for help with the Y2K, Euro initiatives and some software maintenance from these companies.
The Internet boom in during the 1999 and 2000 led to tremendous requirements in the Internet & eCommerce programming for the dot com businesses in the USA & Europe.
With the boom in Foreign direct investments (FDI) in India, the requirement for the IT & Business skills increased tremendously and workers in these areas started to see their salaries and perks raise and the attrition rate began to climb.
Most of the skilled work force are int he 20s and 30s and this affluent age group now are the main drivers of the real estate, automotive and the retail industries.These factors let to changes in Indian market dynamics and the young middle class now have a lot of money to spend and now moving from the basic necessities to the looking at buying the luxuries in life. The Business marketing in India are now targeting this young work force by offering products and services targeted at this audience. This size of this young target middle to high class is growing rapidly and the estimates are that by 2025 India will have largest working middle class in the world.
During the years prior to the 1990s, the Indian middle and rich could not purchase imported items as the Government had a number of restrictions on imports due to the low foreign exchange (FOREX) reserves and also was asking the Indian citizens to purchase the Indian made goods and items. Most of the items in the automotive and electronics were using the old technology and were not appealing to the Indian consumers. The liberalization of Indian Economy allowed the companies in India to partner in Technology transfer and tie up and partner with the leading manufacturers in the developed countries like USA, Germany and UK primarily in the consumer and automotive industries. The Indian consumers can purchase the world best automotive and consumer goods and also able to afford these goods.
As we all know that the water flows from an high level to a low level, so business do want to lower their costs !
The Businesses in the high cost and developed countries like USA, UK & Canada are in high pressure to lower cost and stay competitive and also improve the shareholder value. These businesses are now taking a note of the low cost service providers and manufacturers as well as manufacturing opportunities in India and are looking at lower their costs of operating business
The trade laws in India now allow investments and trade with foreign companies and other nations like USA, UK, Canada, Germany. This has resulted in an affluent middle class in India and the demand for foreign goods and high quality consumer goods has increased by multiple folds and thereby opening up an new market segment for the affluents.
सौर्सस: बुसिनेस वीक, इकोनोमिस्ट॥
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