Oct

26

Things are not looking any better. Markets continue to plunge around the world. Stocks are still dropping in the US, Europe and Asia.

Economic stagnation is increasingly becoming apparent for the US. It appears that the authorities cannot arrest this spiraling descent of the US economy, all efforts and positive outlooks are said to be ‘delusional’.

However, it is far better to do something rather than despair.

The question on the matter is, what can we do?

India

As world markets slow down to stem the sell-off in assets and restore some measure of calm, India’s IT and BPO sectors are far below their estimated export revenue mark of USD 60 billion this year despite companies’ efforts to increase their utilization of resources and deployment of employees to the possible areas of necessity within the organizations.

There appears to be a limited number of measures available for Indian companies to take in order to increase value. These include wage moderation and increasing the efficient use of company assets such as real estate and IT infrastructure.

In the recent 2008 IT Industry Competitiveness Index, India is ranked 48th in the world (11th in the Asia-Pacific region).

Despite marking high in business environment (59.3 percent) and support for IT industry development (54 percent), there are still areas of improvement in IT infrastructure and R&D environment in the country.
The Philippines

The Philippines also earned a place in the 2008 IT Industry Competitiveness Index, it ranked 47th worldwide (10th in the Asia-Pacific).

According to the 2008 IT Industry Competitiveness Index’s study, the Philippines performed strongest in providing a favorable business environment (67.9 percent), support for IT industry development (54.0 percent), legal environment (50.5 percent) and human capital (44.9 percent).

However, a very low score in R&D environment (0.1 percent) markedly pulled it down.

In response to the global economic slowdown, the Philippines has been called to make its investment climate more attractive and convenient through enhancing the conduct of business registration in the country by

  1. Establishing a web-based registry system,
  2. A credit information system to reduce lending risks and
  3. Implementing the anti-red tape law to ensure speed and transparency in government transactions with the public.

Thanks to the lessons the Asia-Pacific nations learned from the 1997 Asian Financial Crisis, we are able to buffer the effects of the stocks storm from the US but let us face reality here, we are not completely invulnerable.

Governments, non-government organizations and industries are taking measures to move forward simply because that is the only alternative we can choose to do: move forward.

The US financial storm’s effects are presently strong but soon it would dissipate.

Its progress is just too slow for comfort so another way to weather it is to move past from it towards locations warm with opportunities and market potential.

Outsourcing Solutions, Inc. – your outsourcing partner!

References:

  1. “IT, BPO sector impacted by global slowdown: Scindia.” 23 October 2008. The Economic Times of India. Accessed 24 October 2008. Link here
  2. “India ranks 48th in global IT competitive index.” 23 October 2008. The Economic Times of India. Accessed 24 October 2008. Link here
  3. Estopace, Eden. “RP improves ranking in IT competitiveness.” 27 October 2008. The Philippine Star. Accessed 27 October 2008. Link here

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