I have been to India on business more than six times over the past two years. Never have I been anywhere so dynamic and fast-moving – close to the very edge of frenetic. Driving across Delhi, Pune, Mumbai, Bengaluru and beyond, the vibrancy of India is obvious. The ever-present construction of roads and buildings is evidence of growth in this burgeoning market. Yet, what a difference a few months make. Companies have seen upwards of 30% year-over-year growth, but this year brings a detour to the dynamics of the past few. The detour is called lessening growth, sudden reductions in hiring and even downsizing, which as been most dramatic for Multinationals who have left skid marks in India as they put the breaks on expansion and volume, whether in outsourcing to India or doing business on the ground. Now companies in India are facing new road signs.
- Stop: Watch Your Cost Management and Profits
- Yield: Now’s A Good Time to Restructure
- Reduce Speed Ahead: Stop Hiring and Consider Cut-Backs
- No U Turn: Don’t Go Back The Way You Came, Refocus Your Strategy and Drive Ahead
Now let’s not feel too badly for India because when you go from 30% year-over-year growth to 20% growth, well…I bet there are a lot of companies in other global markets that would say “20% growth….we’ll take it.”
Sheryl Riddle is senior vice president, Consulting Services for Development Dimensions International (DDI).
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