Editorial: The Times They Are A-Changin'
Are we going through or likely to go through a double dip recession? Or will there just be a short lull in global activity? Without attempting any boisterous predictions on that front, we look to offer our own take on the continuing debt crisis - that we are headed for a correction in global economic activity and much hinges at the global level on China’s plans to increase domestic consumption and shift focus into building a services economy.
On the domestic front, there is a combination of the likely good and bad. A global correction would most likely lead to a commodity correction, which is beneficial for India. On the flip side, though, is the future of India’s golden goose - the IT/ITeS industry that contributes disproportionately to our export basket and is one of the major drivers of consumer spending. The Indian IT/ITeS industry performed admirably during the last slowdown of 2008-09, in spite of dire predictions to the contrary. It is a testament to the vast depth of talent, management ability and resilience of some of India’s best IT companies - many of which have doubled revenues over the last 4 years, while maintaining profit margins.
But a multitude of macro factors, both global and domestic, have begun to catch up with the industry - the most obvious being a sovereign debt crisis in the US and in Europe. Also, most Indian IT companies have grown revenues with proportionate employee growth and this is turning out to be a problem in the face of talent supply issues and wage inflation; especially when global competitors like Accenture and IBM have managed better ‘non-linear’ growth. This - cover story looks into these issues and talks to eminent business leaders, HR professionals and academia to get a sense for how things will pan out for the industry.
Other highlights in the issue include the L&D Special - a compilation of best practices from industry professionals and the ‘Employability Gap Survey’ conducted by IndiaSkills & People Matters. As every month, we take this opportunity to thank some of the best minds and practitioners from the industry who contribute to the body of knowledge in the critical areas of talent management and leadership that People Matters strives to deliver in the most effective manner.