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Changing Business and Market Trends

It is said “the genius of investing is recognising the direction of a trend – not catching highs and lows’. Moving with the current can save from the sudden lurches that might otherwise hit the business. The last few years have displayed a tremendous transition in the way the business operates. This article briefly describes some of the changes that had happened and is happening in the business world.

The major development that the world of business witnessed was the birth of the outsourcing business. BPO or business process outsourcing which started amidst stiff opposition rose high above the people expectations and provided solutions to a great number of problems faced by the business entities. BPO industry which started with the transfer of jobs like basic data entry and market research witnesses the transfer of high intellect jobs like engineering design, management, legal processes, etc. The transition from mere BPO to Knowledge Process Outsourcing and Legal Process Outsourcing changed the way the business operates.

The change in business also demonstrated a change in the market trends within a short span of time. India’s dominance in this industry is expected to show signs of decline. To ensure its continued sustenance the business concerns in India have begun to function from other countries where the cost of operations are lower and where there are better prospects for the businesses to be outsourced. Indian companies like TCS, Wipro, Infosys have begun operations in the next generation of BPO markets. For instance Wipro have started operations in China, Romania, etc while TCS has businesses operating in many countries of the world. Many companies are coming up with new business models like risk-reward pricing techniques to prolong their existence. Similarly vendors take the risk of investing in business of the other which has chances for better prospects.

Another trend that was brought with it was a change in the composition of the work force. Companies have started adding foreigners into their payroll to gain better business knowledge. In the initial stages the existing employees were sent abroad to function for the entity. But with competition intensifying, drawing fresh blood into the system became a necessity who can contribute ideas with a new perspective. But managing a multi cultural multi lingual team must be done with great caution to avoid unnecessary complications. To have a better understanding companies provide a platform for learning foreign languages and their culture. Companies like Wipro conduct Japanese classes for its employees to gain better working relationship.

On the recognition of the impact globalisation has brought to the economy, the governments have started working on creating a better image for the country to draw foreign companies to set up operations in their country. India Brand Equity Foundation (IBEF) is a typical example of this as this was set up by the Ministry of Commerce, Government of India and the Confederation of Indian Industry to propagate the brand image of India in the industrial world. Similarly state governments can be seen trying to lure new business entities into their states by providing them better deals. The large scale of operations as a result of globalisation also led to a huge investment in the information technology sector with companies trying to come up with innovative ideas to facilitate good communication systems.

The current market scenario has brought about changes in the way the business operates. Telecommuting is gaining popularity over the recent years with many companies opting for it on account of huge savings made on the cost of infrastructure. In countries like India where the cost of real estate is said to be Rs.75 sq.ft.per month in certain areas compared to that of $ 1.5 in USA, telecommuting can result in a huge savings on the cost of operations. With internet protocols being strengthened continuously by forums like IETF and DSL Forum, higher chances for data security can be ensured in the future.

Another change is in the form of increased accountability to the shareholders and the society. With huge investments needed for company expansion to withstand the intense competition, the company’s dependability on the shareholders has gone up drastically. Moreover as the stock prices are said to be the reflection of the future earnings of the company, the need to function admirably has become a necessity. Corporate social responsibility to its shareholders, employees, society, and the environment has grown by leaps and bounds. With the world of business changing every minute, moving with the pace set by the trends imposes a great challenge to the industries.

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