Globalisation critical for the technology sector: PwC
By siliconindia   |   Thursday, 22 April 2010, 18:53 IST   |    1 Comments
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Globalisation critical for the technology sector: PwC
New Delhi: Technology companies need to be bold and brave if they want to capture the opportunities for success in an increasingly global business environment, according to a newly released report, Globalisation: a business imperative In the aftermath of the global downturn, companies are increasingly looking for ways to not only build revenues but also to contain costs. With these two goals in mind, globalisation has become an even more attractive strategy for technology businesses. 80 percent of respondents to the PwC survey expect increased competition from emerging market companies. The sheer size of their skilled workforces and markets may make it hard for other developed economies to keep up. Thus, across the board the BRIC countries (Brazil, Russia, India and China) continue to be of key importance for technology companies, with 60 per cent citing them as potential future markets. Another important fact that the report establishes is how talent is easier to retain in bad times. In the light of these events, Hari Rajagopalachari, Leader Technology Practice, PricewaterhouseCoopers said, "Rising protectionism through non-tariff barriers in the advanced economies has become a significant barrier to globalisation as a result of the downturn. 38 percent of the companies list this factor as a leading barrier to globalisation- up from 21 percent pre-downturn. The impact on labour mobility has a significant effect on the technology services sector in India which plays significantly on the supply side of the services equation. This would also encourage Indian companies to move from an Indian workforce model to a global workforce model. On the demand side, the BRIC economies are now becoming important current and future markets for this sector. These economies will need to continue to focus on improving infrastructure and IP protection and strength of the legal system." One more key sentiment that the report highlights is a sharp rise in fear of protectionism. The biggest issue that IT companies are concerned about globally is potential curbs on the movement of talent. Another major worry is that while banks are traditionally major IT spenders, those that have received state aid 'may find it challenging to outsource globally' because of government involvement. Raman Chitkara, Global Technology Industry Leader, PricewaterhouseCoopers LLP opined, "The technology sector has constantly sought the brightest and best individuals to work within the industry. If protectionism continues to increase it will severely curtail the ability of global technology companies to attract, retain and move talent around the globe and attracting individuals to work in the sector will prove extremely challenging."

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