Monday, May 16, 2005
India's lagging Financial System
Read this post at Mckinsey online , Interesting insights on a comparision of two emering economies, China and India. Current state with a futuristic look at the financial health of the country. Good read and pointers. Click here
Friday, March 04, 2005
Is India Losing its competitive advantage in offshore outsourcing
Is India losing its edge in the outsourcing game? My take is No, however it shows early signs of a burnout.
India may give away couple deals to emerging markets such as China, Philippines,Russia etc, however India is way ahead in this industry and getting business out of India will be very tough.
Couple warning signs:
1) Attrition: India is currently facing one of the worst employee attrition, the high demand propelled by increased offshoring of work has taken the worst HR nightmare out of the box. No Shows, walk outs have become HR's reason for insomnia. High attrition will force companies to revise employee retention activities which will drive up employment cost in turn impacting price competitiveness which has been a major offshore calling card. Indian companies are now looking at cities such as Jaipur, Chandigarh, Calcutta,Chennai to tap local talents and to remain competitive to the clients.
2)Salary Inflation: With increased competition and multinational corporation waging a talent war, companies are looking at abnormal salary raises to employees to bind them to their companies. Money matter, that's what the new mantra is, commitment and loyalty is out of the window, Indian employees have found their new friend in waiting after a three year hiatus. Companies will have to look at yearly increases by 20 - 40% and will find it hard to provide same value add to Client without adding some of it to their project cost.
3) A weak dollar : May 2002 , a dollar fetched Rs.49, today a Dollar will get us Rs.43.5, with the trillions of deficit, the Dollar is not a favored currency at this time and may fall further which will directly impact offshore project pricing.
4) Political volatility & questionable infrastructure: India has always been viewed by the western world as unstable and volatile. Nuclear neighbors, a corrupt political and bureaucratic system, weak infrastructure ( road, electricity etc)are couple notable reasons why our own homegrown companies have disaster recovery centers at places lile Mauritius, or development facilities at Philippines and china.
5) Job burnout: The high demand industry is pushing the limits on people,no one talks of work-life anymore, extended working hours, late nights, night shifts have taken a toll on employee health and family. Result, an under productive employee - outcome a dent on quality.
Will India remain victorious, time will tell, India is the china of Software, its not only impossible but a long shot to outrun China from the manufacturing top spot, out placing India from the IT top spot is unthinkable at this time.
Stellar leaders, quality service at a fraction price, a untirin workforce,competent talent pool and consistency in successful delivery of world class services 24/7, India leads the pack by years.
India may give away couple deals to emerging markets such as China, Philippines,Russia etc, however India is way ahead in this industry and getting business out of India will be very tough.
Couple warning signs:
1) Attrition: India is currently facing one of the worst employee attrition, the high demand propelled by increased offshoring of work has taken the worst HR nightmare out of the box. No Shows, walk outs have become HR's reason for insomnia. High attrition will force companies to revise employee retention activities which will drive up employment cost in turn impacting price competitiveness which has been a major offshore calling card. Indian companies are now looking at cities such as Jaipur, Chandigarh, Calcutta,Chennai to tap local talents and to remain competitive to the clients.
2)Salary Inflation: With increased competition and multinational corporation waging a talent war, companies are looking at abnormal salary raises to employees to bind them to their companies. Money matter, that's what the new mantra is, commitment and loyalty is out of the window, Indian employees have found their new friend in waiting after a three year hiatus. Companies will have to look at yearly increases by 20 - 40% and will find it hard to provide same value add to Client without adding some of it to their project cost.
3) A weak dollar : May 2002 , a dollar fetched Rs.49, today a Dollar will get us Rs.43.5, with the trillions of deficit, the Dollar is not a favored currency at this time and may fall further which will directly impact offshore project pricing.
4) Political volatility & questionable infrastructure: India has always been viewed by the western world as unstable and volatile. Nuclear neighbors, a corrupt political and bureaucratic system, weak infrastructure ( road, electricity etc)are couple notable reasons why our own homegrown companies have disaster recovery centers at places lile Mauritius, or development facilities at Philippines and china.
5) Job burnout: The high demand industry is pushing the limits on people,no one talks of work-life anymore, extended working hours, late nights, night shifts have taken a toll on employee health and family. Result, an under productive employee - outcome a dent on quality.
Will India remain victorious, time will tell, India is the china of Software, its not only impossible but a long shot to outrun China from the manufacturing top spot, out placing India from the IT top spot is unthinkable at this time.
Stellar leaders, quality service at a fraction price, a untirin workforce,competent talent pool and consistency in successful delivery of world class services 24/7, India leads the pack by years.
Wednesday, February 16, 2005
People - A goldmine rarely explored
Organisation are goldmines waiting to be explored. And its your intangible asset - the people I am referring to. When was the last time were you given an opportunity to share your thoughts on the company you work.
Every individual brings in a unique perspective, majority of organisations usually takes the vast pool of human potential/talent for granted and fail to tap the power of knowledge.
One of my first management lesson came to me from a seminar presentation I attended during my final year of schooling, the presenter gave an example as an analogy, It was about a outgoing shop floor worker, who used his 2 minutes of fame during his felicitation ceremony to convey, a management lesson,he said " It was a pleasure working with XYZ all these years, this experience would have been memorable if XYZ used my brain as well which came free with the hands".
What it says is simple, explore the potential employees bring in to the table.Have you given them an opportunity to be a part of your business?
Every individual brings in a unique perspective, majority of organisations usually takes the vast pool of human potential/talent for granted and fail to tap the power of knowledge.
One of my first management lesson came to me from a seminar presentation I attended during my final year of schooling, the presenter gave an example as an analogy, It was about a outgoing shop floor worker, who used his 2 minutes of fame during his felicitation ceremony to convey, a management lesson,he said " It was a pleasure working with XYZ all these years, this experience would have been memorable if XYZ used my brain as well which came free with the hands".
What it says is simple, explore the potential employees bring in to the table.Have you given them an opportunity to be a part of your business?
Monday, February 14, 2005
CiteHR - Check my response on CiteHR
CiteHR is a upcoming HR portal, you could check me there by following the link
CiteHR and Me
CiteHR and Me
IHRC & IHRJOBS
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