Indian Companies are better competitor to Multi-National Companies
Globalization has brought companies to set-up their base in India. Though, indian companies are as competitive as their MNC counterparts, the question is, are we "Indian companies" doing better in our business compared to MNCs?...What factors are contributing to sustainable growth.
- All the No points
Indian Companies are better competitor to Multi-National CompaniesYes because... No because...
Well i think Indian Companies are better competitor
Indian Companies are better competitor because as we know in private firms results are very important and to achieve that results employees have to work under pressure or for an extra hours. This condition is same in any of private firm in the world. The main issue is that MNCs had started their international operations 20-40 years before and Indian firms have started it now in an aggressive manner. Now if we talk about salary and turnover is just because of currency gap. This remains because many Indian firms are getting revenue in rupees. If they get maximum revenue in Euro, Dollors Or in any costliest currency this picture will change. And after 10-15 years if Indian firms establish their own brand with new technology sucessfully then only Indian firms will also be in the range of MNCs. For this they will have to spend more and more for R&D. If you see the % spending in R&D expenses you will see a significant gap. There may be many aspects in which MNC's may have stronger hand but if we talk about the relationship with customers in India then of course Indian companies will have a better position. Because they will understand the market better.
the Indian companies are now listed on the New York Stock Exchange and most of them are on Nasdaq. By having a listing there they are not only getting visibility but also access to low cost capital, as the cost of capital in the US is very low as compared to India. The Indian companies are not serving some small shops, but the best including the Fortune 50 and Fortune 100. Maybe, the relationships are at a lower level today, but it can be leveraged to get more business from them... They are also fast establishing global presence in terms of operations. These companies have been showing positive signs on the acquisitions front as well. TCS, Wipro, and Infosys etc have made a lot of acquisitions of foreign companies in the last two years. The Indian companies are expanding their global outlook and reach and setting up centers globally in the US, China, Japan, Malaysia, Czech Republic, etc. For instance, Infosys plans to have around 25% local staff by 2012, TCS is asking every employee to learn a foreign language and Wipro CEO's main office is in the US. So, in another couple of years, we'll have MNCs which are of foreign origin and MNCs which are of Indian origin.