20:22
Greg
There is no denying that times are difficult now for everyone with recession and negative growth the buzz words on so many peoples lips. Countries throughout Europe and even the mighty US now have crippling levels of national debt that are driving economies to stagnate and shrink further exacerbating this global problem. Everybody is trying to survive these hard times in hope and preparation for a brighter and more prosperous future. So how can you and your company gain an edge, or just stave off the recession by bucking the trend and posting a positive balance sheet?
Where does the next good business idea come from?
In the 1800’s many of Americas early cities had become over crowded with high levels of crime and poverty. The government realised this state of depression and brought about the ‘Homestead Acts’ releasing huge areas of undeveloped land for ownership by people prepared to become pioneers and head off towards the western frontier in search of a new life and untold riches. At the time the government could not have realised the effects this decision would come to have on the country for this huge mass migration shaped America into the country that we recognize today. The land reform acts brought about the establishment of new towns and cities and with them helped to revive a once flagging economy as new businesses grew and thrived.
So I ask you the question, is India the new frontier for western business?
Two countries that have failed to have noticed the global recession are China and India. Both countries have continued to post record growth patterns that most countries can only dream of appearing immune to the effects of the global recession.
You may start by saying why have I chosen India and not China whose economy leads the world as a prospect for western business? By now we are all familiar with the large cargo ships that have reached the shores of most countries full of cheap Chinese exports flooding retail stores with textiles and electronics. Chances are if you look at the label it will often say “made in China!” China has gone to great lengths to promote its foreign exports to countries all around the world and achieved great success, however when International companies look to promote their products within the borders of China ‘fair play’ are not words that feature in trade negotiations with the Chinese. Blatant protectionism has led to western companies finding it increasing difficult if not impossible to trade within China. No better example of this could be the constant interferences Google has received since beginning to operate in the Far East, security breaches and forced closures forcing the company to consider its future in this vast country. So until the land of the rising sun can enter into free and open trade policies with international businesses many companies will be forced to avoid this sleeping giant and in turn China will miss out on global opportunities.
Unlike China, India has embraced a liberal approach to trade with the global community and has adopted a very different strategy in an attempt to secure its economic future. A change in government saw the introduction of many policies to promote free trade and an open economy that sees India today posting domestic growth figures approaching double digits. With a truly massive population exceeding 1.2 billion people, India has embraced entrepreneurialism and has witnessed a boom in the formation of new businesses and job creation as this country develops. Companies like TATA Industries may have come from humble beginnings but have now grown into global competitors and shown the way for many and how India could become an economic superpower. India now features some of the most successful companies on the planet bring economic wealth to this emerging nation.
What has further helped to secure India’s impressive economic growth is a willingness to accept foreign investment from overseas companies allowing them to expanding upon its fertile shores. Not only has India looked to promote its exports throughout the world, India’s government has taken the policy to encourage foreign businesses to invest in India building new factories and offices around the large cities throughout India.
So why is India such an attractive proposition to forward thinking international companies?
There are many reasons why companies are now looking to forge commercial ties with the country of India and here are a few reasons perhaps why you and your company should consider doing the same. Labour is one of the largest costs faced by any company in the provision of a service or production of a product and it one area of a business that companies are constantly looking to make savings on. India has a vast and willing population with an estimated 500 million worker that when trained could provide any company with an excellent service. The benefit of seeking a labour force in India is made obvious when you consider that India has one of the lowest cost of living figures anywhere in the world. This allows a responsible company to pay a good wage yet it remains a fraction of the cost per head when compared to companies in western countries that have a much higher cost of living. Straight away vast savings seem possible enabling a company to bring a product to market for a fraction of the cost therefore giving the company the option to become more competitively priced within the market or increase profit margins. Two attractive options to any company!
Expertise and knowledge are vital to any company’s success. Employees and their knowledge base are what will allow a company to grow and expand is it looks to develop along with its products and services. India now produces thousands of well trained and educated graduates from the many universities spread throughout the country trained in a vast array of subjects from business management to finance and the ever widening variety of scientific disciplines. So should a company require more skilled employees than manual labour India can supply them in scores. India has long been acknowledge as a great exporter of graduates and it is often said that Silicon Valley would not be the same and have delivered so much to the computer industry had it not been for the influx of IT experts from the Indian sub-continent. India now boasts its own version of the renowned MIT (Massachusetts Institute of Technology) famed for breading highly advanced IT graduates that go on to shape the technological world we live in. There is no doubt that India has big ambitions and well trained graduates in all the modern disciplines are at the heart of their plans. The final reason for employing these bright graduates lies in the first point, that once again obtaining their loyalty and expertise can be obtained for a fraction of the cost when compared to western countries.
Communication, vital to all living things as well as been essential in all successful businesses and corporations. When a company goes international language becomes one more factor to complicate the formula that makes a company a winning combination. It has been true that throughout history some monumental mistakes have been made because of the language barrier or failure to communicate. In 1998 Lockheed Martin supplied thruster software using imperial units of measurements to Nasa for a space probe destined for Mars. Nasa working in metric units piloted the probe 80,000,000 kilometres to Mars only for the world to watch the probe burn up on entry to the planet at a cost of billions of dollars and thousands of red faces all because of a failure to communicate. India has a bright and colourful history part of which includes a long history of being a member to the British Commonwealth. As a result close ties have developed between the two countries of India and Great Britain and this has led to English been one of the most common languages to be spoken throughout the country. English is now taught in most schools and virtually all universities through India making communication that much easier for businesses looking to setup and work within the Indian sub-continent. A huge advantage over many other developing nations looking to attract foreign investment and business.
Setting up a new factory or office is a massive undertaking for any business no matter what their size, and can only be done after many hours of planning, discussion and the inevitable viability studies. However it is clearly not impossible for when you search the international directories of many of the world’s largest organisations you will find numerous India addresses and why shouldn’t you? India offers vast amounts of land in a fast moving buoyant economy with reduced setup costs compared to any of the western countries that the majority of these huge companies call home.
Why does it have to be the reserve of the corporate super giants?
The fact is it doesn’t. Yes it may be a daunting task the thought of moving a company or setting up a new one in a distant land but that is no longer an excuse, with international flights spanning the globe many of you reading this article could be in India in the time it takes to traverse your own country so is it really that far? So with labour, expertise, cost savings and so many other things to offer, I ask you again why India shouldn’t be the new frontier for western business?
If I make a convincing argument then perhaps it is because you realise in these exceptionally difficult times people have to make exceptional decisions to thrive or even just survive, so what will you do? If you would like further facts, help or information please don’t hesitate to contact me on my blog.
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