Economic recovery: A mirage
Experts deliberate on the topic and conclude that it is time companies analyzed their strengths, remained alert about the opportunities and cautious about the uncertainties in the future.
Is it time to celebrate economic revival as yet? The answer we get to hear is No. At least the recovery that seems to be happening isn't an easy one. In a discussion with Adil Zainulbhai, Director, McKinsey & Company, Pramod Bhasin, CEO, Genpact and Vineet Nayar, former CEO HCL Technologies, Stephan Roach, Chairman, Morgan Stanley Asia, pointed out that Asia's, including India, industry has largely been dependent on the business demand in the US. And, with unemployment rate in the U.S. currently at its peak, people have very little to spend and slowly the demand would diminish which in-turn could slow the pace of growth of the Asian services industries, he has been quoted as saying.
While Stephan Roach painted the short term picture, Adil Zainulbhai said believed the mid-to-long term scene is going to be entirely different. With centers of economic activity on a shift mode, the coming decade is expected to see a larger focus on the Asian and Indian regions. With GDP of Asia likely to converge with that of Europe, Asian industries will be in a win-win situation, Adil felt.
Coupled with increased mobile and internet usage in Asia, the scenario is beginning to see communication as a more convenient and ready to deal option when it comes to offshore clients. It was also pointed out that an added number of economies are currently working toward an efficient use of natural resources using technology.
Adil also pointed out that with the flexibility that cloud-computing and other new models offer, a trend of making structural changes in the organization has emerged. This is to optimize resources and encourage globalization, it was pointed out.
Adding to the deliberations, Promod Bhasin said the industry has reached a tipping point in globalization and hence the focus will remain on using global resources effectively. Also, the need to adopt models based on cloud, social networking and mobile telephony has turned out to be increasingly important.