Recession Biggest Threat to World

by Manu Sharma    Jan 07, 2009

More than a war-like situation, the biggest threat in the world today is recession and the devastating effect this can have on companies, employees and countries, said Keshav Murugesh, President of Syntel Inc. an outsourcing company.


Talking to CXOtoday on "Will the war-like situation impact outsourcing industry?", Murugesh said, "At Syntel, we do not see any impact from this situation. The biggest clients for IT and KPO companies that have an India backend are in the Western hemisphere. Countries that do business with each other will rarely have disagreements and this is true of India’s relationship as a global IT and KPO supplier to North America and Europe. Therefore the current situations caused by the terror attacks on Mumbai are just a distraction in a much bigger scheme of things."


So its time every CEO of a global or a local company start looking at how they can absorb global delivery processes to create more efficiencies, access a very talented workforce and reduce cost significantly and on a sustainable basis, said Murugesh.

Janakiraman S., President & CEO - R&D Services, MindTree Ltd said, We do not feel that there is a ‘war like’ situation. But we hope that the current political situation is resolved at the earliest and focus on strengthening the economy. There has been no apprehension of any kind that we have seen with our customers.


Likewise, N.Venkaswamy, managing director India and SAARC of Juniper Networks India Pvt Ltd said, We do not believe that there is a warlike situation even though the rhetoric may suggest as much-both. While we are not in the outsourcing business, (we are a part of Juniper Inc and have sales and R&D in India), for us it is business as usual. Moreover, we constantly communicate with our customers and keep them updated.


Reacting to the precautionary steps taken to safeguard interests across various organizations, Venkaswamy said, Looking at the safety point of view, Juniper has taken a few precautions such as tracking our employees whereabouts at all times, monitoring and enforcing travel advisories from time to time and beefing up the observance of security guidelines at our offices.


Murugesh said, Syntel invests strongly in security for its personnel and offices and has a number of measures in place as standard operating procedure to ensure minimal disturbance to projects and operations from a technology point to view in case of any manual or man made threats.


Syntel’s focus is our clients. Every client is special and at this time client intimacy will take centre stage. IT and KPO firms who have the capability will focus on new offerings and innovation. All of this will enable the top line. At the same time since sales cycles will be longer and some clients in the B&FS space may reduce budgets the offshore firms must take steps around geographical expansion, adding new service offerings and waste elimination.  The business, as usual, will continue to be driven by the basics of cost, innovation, quality and the right pricing models, he said.

Related Link:

India Will Foster IT to Counter Terror: PM