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Thursday, July 28, 2005

India As A Global Agent Of Change

(Via Bweek)Nandan Nilekani sees India's impact on the U.S. economy, through globalization and outsourcing and says that the rules of the game are being rewritten by the India headquartered software service providers.The productivity focus is the strength of the US economy and ultimately, productivity is doing more things with less people. The US economy that makes and destroys millions of jobs a year- has a potential to unleash a huge productivity surge in the way companies are run. Digitization and the advent of IP technology, labour pool have made everything so simple. And the focus is now on designing more customer-facing and customer-empowering opportunities. Nandan rightly points out that there's also a huge amount of process efficiencies that aren't in large corporations yet. So in a few years you'll see most companies unleashing this massive productivity surge. When the dust settles, the firms will look very differently. They'll be global.

I wrote this morning that the asian threat to the US," is overblown and the US large corporations may have the best solution and answers amongst host of other factors that may influence the US competitiveness. I do not think that the US could be so easily overrun in the emerging world - given the reselience that the US has shown in the past and the depth of talent and corporate strength that the US possess -clearly tough times ahead -but we may see a lot more bounce from the US".Nandan here highlights, that the U.S. is the world's most dynamic innovation engine with a good innovation ecosystem with the world's great universities, venture capital & efficient caqpital markets. It's the adaptability of the society that's its strength. It's absorbing the changes. For other countries, creating the innovation engine is a much longer play. It's happening. But it will take a while. India is one of the agents of the change - the productivity surge. It's the big enchilada. Part of it is technology. Part of it is process globalization, so you leverage global resources and redesign things. Part of it is much more customer involvement - which the Web has enabled.

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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
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