Jan 22nd – Black tuesday – Opportunity for Indian firms ?
DATE: January 22nd, 2008
When I am looking at news stories and views around the globe on offshoring and outsourcing, I can’t help but watch the incredible carnage in the Asian markets and Indian markets over the last couple of days.
With the regulators and corporate leaders in the US all dancing around the ‘R’ word Recession and no one willing to be the first to dance , these last couple of days have shown how interconnected the world is today.
These events happening right after earnings by Indian outsourcing vendors which were lack lustre inspite of the assurances by firms on limited impact of subprime and credit crisis.
The reality is that the world is flat and ‘coupled’. The last couple of days have debunked the myth of the ‘decoupled world’. There is little comfort after the market carnage yesterday in the Asian markets including the Indian markets and a high degree of uncertainty. The market crash in India, in some ways has come as a rude shock for individuals, companies who have awakened to a vibrant and growing economy , with ample growth potential and job opportunities. It is also a shock to ‘retail investors’ domestically who have had the means and the capability for the first time to participate in capital markets of India and seen it go only one direction – UP. Companies who were hoping to believe that the markets in India and China are immune to globalization and world pressures have had a reality check too. You realize this is so new to some of the investors in India, that when you start blaming the government for your ‘greed’ there is something immature about that.
When Mr Friedman said the world is Flat he was right specially that you can’t hide or isolate economically anymore. A number of Indian firms have seen so far the positives of the globalization of the world, or flattening of the world and some might even claim that they have lead the world to this flatter model. It’s now in troubled times, when the globalization model and the ability of Indian firms to withstand this market correction and survive and adapt to Flat world will be put to test.
The overall economy and growth prospects in India are still incredible and it will continue to be a young, vibrant economy. The challenge for firms now is to be able to deal and adapt to the global world. There are a number of Indian firms who are going to surive and thrive and mature in these adverse times but there are quite a few which are going to be left on the wayside.
This year promises to be a game changing year for a number of players within the Indian offshoring and outsourcing landscape and I will continue to share the joys and heartbreaks of the ride.
Welcome to 2008
LINK TO Asian Market Indices for January 2nd
http://offshoreindianews.files.wordpress.com/2008/01/picture1.png
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