We continue to face major Economic pressure points today ,as our Current Account Defecit and fiscal deficit remains high.Our ability to fund the populist Government schemes is highly limited and the ratio of external debt to the GDP mounts because of tepid growth quarter over quarter.We have hit to the 10 quarters low as far as the growth deceleration is concerned.Imagine this country is like a typical Company where our growth is getting highly dependent on the external factors of our Sales booming and so the Profits must improve depending on better execution of orders and efficiently managing the cash and all costs-variable as well as the fixed.Likewise our capex and opex are maintained at a level to derive the better reasonable return on our equity/assets. Today this is under severe strain because of deficits on the trade account as well as the fiscal account.Only Growth can tackle these problems like Sales turnaround helps in a Sales Organisation.
This is what leads to the basic question of Growth in sales coming because of Leverage,and Asset Productivity.Our T&M companies in India have huge asset base in terms of smart and youthful manpower.Many of these T&M companies,particularly the MNCs and their channel partners have a huge cache of cash generated over the last decade! All these assets can be creatively utilised for leveraging the growth,and the industry overall can be big lever of prosperity ahead.Also many MNCs have a natural advantage today,as the INR is weakening against major currencies and is expected to decline till at least two to three quarters.These companies can help their own cause if they help the Indian market by announcing FDI allocation for the same products which they sold over last decade.Their companys local sales forecasters can help them with this pipeline visibility!
Turning the attention to buy side of the equation our Procurement of T&M needs to undergo paradigm change.Smart professionals need to take over from sarkari babus and officers mentality.They have to strike strategic advantage to their organisations (saving foreign exchange,operational knowledge sharing ,deferred payments on capex/opex conversion etc).They have to move from L1 syndrome totally and help organisations improve on the larger efficiencies and efficacy of procurement.T&M companies can sure take advantage of their product line and customers opportunities in this fiscal.
This is what leads to the basic question of Growth in sales coming because of Leverage,and Asset Productivity.Our T&M companies in India have huge asset base in terms of smart and youthful manpower.Many of these T&M companies,particularly the MNCs and their channel partners have a huge cache of cash generated over the last decade! All these assets can be creatively utilised for leveraging the growth,and the industry overall can be big lever of prosperity ahead.Also many MNCs have a natural advantage today,as the INR is weakening against major currencies and is expected to decline till at least two to three quarters.These companies can help their own cause if they help the Indian market by announcing FDI allocation for the same products which they sold over last decade.Their companys local sales forecasters can help them with this pipeline visibility!
Turning the attention to buy side of the equation our Procurement of T&M needs to undergo paradigm change.Smart professionals need to take over from sarkari babus and officers mentality.They have to strike strategic advantage to their organisations (saving foreign exchange,operational knowledge sharing ,deferred payments on capex/opex conversion etc).They have to move from L1 syndrome totally and help organisations improve on the larger efficiencies and efficacy of procurement.T&M companies can sure take advantage of their product line and customers opportunities in this fiscal.
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