9 Dec 2009, 0542 hrs IST, TNN
BANGALORE: IT buyers are expanding their global sourcing networks as part of an effort to reduce their dependence on a few large locations such
as India, says a new report by Everest Research Institute.
Recent events impacting offshore locations, such as terror attacks and typhoons, and suppliers (such as bankruptcies , frauds) have underscored the need for holistic risk management in global sourcing, the report says.
“Traditionally, global sourcing risk management approaches remained largely focused on engagement-level performance management. However, a more sophisticated approach to risk management compels buyers to understand risk from the entire sourcing ecosystem spanning each individual supplier and delivery location as well as the collective portfolio of suppliers and locations,’’ says the report.
The institute also says that another new global sourcing paradigm is emerging and generating additional push for creating a global delivery network.
“This new paradigm is associated with a more robust and complex demand profile that mandates a global delivery network and is creating further impetus for expanding the delivery footprint beyond the traditionally favoured offshore destination, India,” Everest says. A combination of these two factors is creating a demand for global locations that support technology and business process delivery. Clients now have a number of credible offshore destinations to choose from.
The report identifies these areas as Brazil, Central and Eastern Europe, Israel, Mexico, the Philippines and South Africa. These markets represent a blend of locations that are either superior skill markets or large talent markets that global sourcing buyers can’t ignore.
“The supplier landscape in these emerging markets includes a mix of global majors, India-centric suppliers expanding their delivery footprint, and domestic/regional suppliers that have roots in the emerging market. A handful of suppliers in this new category have acquired meaningful operating scale and, through investments in delivery capabilities and adopting industry best practices, successfully serve Global 1000 corporations,” the report says.
"....The greatest discovery of my generation is that a human being can alter his life by altering his attitudes of mind...."
Wednesday, December 09, 2009
All the RBI's men ...
Read this:
http://www.moneycontrol.com/news/economy/need-coordinated-exitglobal-stimulus-rbi_429483.html
Brief:
Even as the global economy — faced with the greatest financial crisis since the Great Depression — is undergoing an unprecedented churn, what measures should India take to see to it that its steady growth march does not come to a grinding halt?
More importantly, what should India’s central bank, the Reserve Bank of India, do to ensure that the nation avoids committing the same mistakes that developed nations did — high debt, lack of regulation and over spending.
The respect for the Indian central bank has been mounting with each passing day among the fraternity of global economists for its prompt action before and during the global financial crisis, the men who helm — and helmed — the RBI engine sat down for an exclusive tête-à-tête with CNBC-TV18 to outline their views on the global and Indian economies and how the bank would be charting its course ahead in the field of policymaking.
On the occasion of the RBI’s 75th anniversary; RBI Governor D Subbarao along with former governors Bimal Jalan, YV Reddy and C Rangarajan spoke to Network18's Managing Director Raghav Bahl and CNBC-TV18 Banking Editor Latha Venkatesh.
The first volley thrown at the panel: How will the current global monetary policy — in terms of unprecedented stimuli issued — shape up and what would be its after effects?
See stimulus exit in a year
“I think the [global central banks’] response was appropriate and coordinated,” former governor Reddy began. “Given the type of challenges, it was better to be on the safer side and inject liquidity.” He said the next big challenge for central banks was to time an orchestrated global exit from the loose policy.
Rangarajan said that even as injection of stimulus to resuscitate the financial markets was an “extraordinary response to an extraordinary situation”, developed countries could not sustain the too much liquidity in the system for more than a year.
“This kind of extraordinary accommodation cannot continue for ever because the fiscal deficit of the United States is exceeding 10% and the policy rates being near zero will also cost problems for the United States in terms of the exchange rates,” he said. “Sooner or later, both the central banks and the government will have to act.”
Inflation no major concern
The present governor, Subbarao, said concerns of inflation rearing its head as a result of loose policy were “exaggerated”.
“Having said that, if oil prices shoot up, for example, there could be inflation from the supply side,” he said, which he added was a bigger a bigger threat than asset price inflation. He, however, admitted the danger of inflation was bigger than that of deflation in global economies going forward.
The central bankers also spoke on the disparity between the financial markets and real economy and said the debatable issue of capital controls must be seen on a case-to-case basis. “Capital inflows are, generally speaking, welcome particularly in a developing country. They go to build productive capacity but a distinction has to be made between types of capital flows,” Rangarajan said. “It could also go into speculative activities like raising prices of real estate or even crops.”
Subbarao said that during the time when the issue of participatory notes came up in 2007, there was “discussion and debate” within the RBI and the government.
“There was of course, differences on what needs to be done,” he recalled, “but I think we acted in coordination.”
"....The greatest discovery of my generation is that a human being can alter his life by altering his attitudes of mind...."
http://www.moneycontrol.com/news/economy/need-coordinated-exitglobal-stimulus-rbi_429483.html
Brief:
Even as the global economy — faced with the greatest financial crisis since the Great Depression — is undergoing an unprecedented churn, what measures should India take to see to it that its steady growth march does not come to a grinding halt?
More importantly, what should India’s central bank, the Reserve Bank of India, do to ensure that the nation avoids committing the same mistakes that developed nations did — high debt, lack of regulation and over spending.
The respect for the Indian central bank has been mounting with each passing day among the fraternity of global economists for its prompt action before and during the global financial crisis, the men who helm — and helmed — the RBI engine sat down for an exclusive tête-à-tête with CNBC-TV18 to outline their views on the global and Indian economies and how the bank would be charting its course ahead in the field of policymaking.
On the occasion of the RBI’s 75th anniversary; RBI Governor D Subbarao along with former governors Bimal Jalan, YV Reddy and C Rangarajan spoke to Network18's Managing Director Raghav Bahl and CNBC-TV18 Banking Editor Latha Venkatesh.
The first volley thrown at the panel: How will the current global monetary policy — in terms of unprecedented stimuli issued — shape up and what would be its after effects?
See stimulus exit in a year
“I think the [global central banks’] response was appropriate and coordinated,” former governor Reddy began. “Given the type of challenges, it was better to be on the safer side and inject liquidity.” He said the next big challenge for central banks was to time an orchestrated global exit from the loose policy.
Rangarajan said that even as injection of stimulus to resuscitate the financial markets was an “extraordinary response to an extraordinary situation”, developed countries could not sustain the too much liquidity in the system for more than a year.
“This kind of extraordinary accommodation cannot continue for ever because the fiscal deficit of the United States is exceeding 10% and the policy rates being near zero will also cost problems for the United States in terms of the exchange rates,” he said. “Sooner or later, both the central banks and the government will have to act.”
Inflation no major concern
The present governor, Subbarao, said concerns of inflation rearing its head as a result of loose policy were “exaggerated”.
“Having said that, if oil prices shoot up, for example, there could be inflation from the supply side,” he said, which he added was a bigger a bigger threat than asset price inflation. He, however, admitted the danger of inflation was bigger than that of deflation in global economies going forward.
The central bankers also spoke on the disparity between the financial markets and real economy and said the debatable issue of capital controls must be seen on a case-to-case basis. “Capital inflows are, generally speaking, welcome particularly in a developing country. They go to build productive capacity but a distinction has to be made between types of capital flows,” Rangarajan said. “It could also go into speculative activities like raising prices of real estate or even crops.”
Subbarao said that during the time when the issue of participatory notes came up in 2007, there was “discussion and debate” within the RBI and the government.
“There was of course, differences on what needs to be done,” he recalled, “but I think we acted in coordination.”
"....The greatest discovery of my generation is that a human being can alter his life by altering his attitudes of mind...."
Subscribe to:
Posts (Atom)