Professional Documents
Culture Documents
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þ Fear of a recession looms over the United
States, whenever the US sneezes, the world
catches a cold.
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þ Shrinking jobs and Pay cuts owing to recession
have taken heavy toll on mental health of India¶s
high-profile work force
þ Dr. Jitendra Nagpal, physiatrist says the majority
of those people are 25-30 age group
þ symptoms are loss of appetite, irritability, long
spells of silence, lack of communication with
family and friends and absenteeism
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þ Although no empirical data are available on how
many people affected from recession and
suffering from work-related stress.
þ But increase in number of cases is a matter of
concern for both organizations and families.
þ Nagpal says this is due to unable to face realities
of failure, which develops a fear for work, he
believes this is mainly due to the lay off and fear
of losing the job.
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þ Confidence levels appear to be at an all
time low in IÚ industry
þ 2001-03 slowdowns in the US economy saw
the world embrace the off shoring of IÚ and
BPO services like never before.
þ Current recession threatens to reverse much
of that, with protectionism gaining ground in
the US.
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þ Old bugbear, protectionist legislation, has come
back to haunt the industry
þ Now $52 billion Indian IÚ services juggernaut is
worried.
þ US Senate voted to restrict the hiring of foreign
workers (H-1B visa holders) by banks that are
receiving government bailouts under the
Úroubled Assets Relief Program (ÚARP).
þ Úhe recession has forced the US to become
protectionist
þ "Most Fortune 100 companies have a large
portion of their business outside the US.
þ Úhis will restrict them to do most of the
company to outsource and this will create lot
of job opportunities for Americans.
þ Protectionism will be bad for both the US and
India
þ Úhe Smoot-Hawley Úariff Act of 1930 is an
example of how a recession deepen to a
depression.
þ Economists now believe that the Great
Depression was deepened as a result of this
legislation.
þ Again a similar situation could arise now.
þ Úhere is already a shift in business strategies of
corporate India
þ Large IÚ and BPO firms have started looking at
other markets like Europe, and even the domestic
market.
þ Indian companies will have to adopt a multi-
pronged strategy
þ In case of a full US recession, the onsite staffing
business will see a decline in sales and profit.
þ Recessions at this juncture may not last for more
than two to three years
þ Smart companies will continue investments to
take advantage when recession ends.
þ India will have to spend a lot more to develop
market and supply chain links in alternate
markets like Asia and Europe.
þ Experts say the export dependent sectors need to
re-focus on local demand and income from non-
dollar economies.
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þ IÚ firms can definitely find a market in India
þ India has a huge, small and medium enterprise
base and it is the right time to tap this segment.
þ As for automotive components, consumer
electronics and mobile devices, they have already
found a market in India
þ Úhey have also started looking at tie-ups in China
and other BRIC countriesë
Y
!
þ Worst affected because of Global recession will
be service industry of India
þ Service industry contributes about 52% to India's
GDP growth.
þ People may say that there is going to be a huge
job loss due to recession
þ Úhere is no threat to the skilled people
þ NASSCOM said India will have a shortage of
about 5 million skilled people in IÚ IÚeS
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þ India's travel, tourism and power industry is
going to grow at a better rate.
þ India has a huge population so a huge
consumer base so we don¶t have to always
depend on US for our growth
þ India's GDP is expected to grow at the rate
of 8.5-8.9 % which is again way above the
growth rate of US
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!
þ Its time to be innovative and more effective to
increase the over all efficiency and go for systematic
cost cutting to balance the rupee effect.
þ In West Africa goods at departmental stores are sold
at the rate 5 times than Indian price and Indian
goods
þ It¶s an excellent opportunity for our exporters.
þ Úhe overall impact of a Global slowdown on
India would be minimal
þ Unlike the rest of Asia, India is a strong domestic
demand story
þ So any slowing in the US is likely to have a more
muted impact on India.
þ Strong growth in domestic consumption and
significant spending on infrastructure are the two
pillars of India¶s growth story
þ Corporate India is also learning to master
the art of efficient capital management and
delivery of value-added services to sustain
profit margins.
þ Interest rates are expected to be stable
primarily due to control over inflation and
proactive measures undertaken by the RBI.
þ Úhe electoral mandate may force a course
correction.
þ Úhe intervening period of more than three
months can be one in which the economy
and mass livelihoods suffer damage that can
take too long to repair.
HOPING ÚHIS ÚIME RECESSION
VANISHES SOON SO ÚHAÚ INDIA
GEÚS BACK ÚO IÚS SÚRONGER GDP
GROWÚH RAÚE OF
(ÚHOUGH ÚHE EXPERSÚS SAY IÚ
WILL LASÚ ÚILL Q3 OF 2009)
Ú