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India Poised to Lead Global Services Era

I believe that we are witnessing the dawn of a new era of global services which will transform the global economy.  In fact, the global services era may constitute as significant a departure from the present as the Jet Age did in comparison with the Steam Age.  To be sure, the global services era will be enabled by information technology and driven by demographic transformation.  Moreover, I believe that India is poised to capture a leadership position in the global services era because of her human capital advantage.  Put simply, as baby boomers retire in the industrialized economies, their jobs will move to tier 3 and tier 4 cities in India. Consequently, India’s offshore services industry appears to be in the early stages of a long-term growth cycle. ... Read full article

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Will India Revolutionize the U.S. Financial Services Industry?

Vision 2020:  New York. CNBC is reporting that Mittal Insurance has surpassed GEICO in auto insurance, just months after Tata Financial surpassed Wells Fargo in home equity finance.  With Reliance Healthcare also poised to overtake Cigna in healthcare insurance, it is not surprising that the U.S. financial services industry is stepping up efforts to lobby Washington for a level playing field with India.  Indeed, industry executives have publicly stated on several occasions that they cannot compete with Indian companies because of their “unfair” cost advantage.  Clearly, corporate America has not faced such a formidable competitor since Japan entered the U.S. automobile market. ... Read full article

Outsourcing 3.0: How India Inc. Can Drive India’s Economic Transformation

My aim in writing this article is to highlight a new business model, the Location Optimized Global Services model, that can be leveraged by India Inc. in driving India’s economic transformation. ... Read full article

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Poverty Reduction in India - The Way Forward

With over two-hundred and fifty million people subsisting on less than one dollar per day, India comprises of the world’s greatest multitude of poor people. Surely, poverty reduction must constitute the highest priority for Indian policymakers.  However, because of India’s fractious democratic polity, a broad-based consensus with regard to the optimal framework for poverty reduction has thus far, eluded policymakers.... Read full article

Ending Poverty by Forging a Global Partnership for Prosperity

Ending poverty is the single greatest challenge facing humanity.  Despite a century of rapid technological progress, almost half the world’s population continues to subsist on less than two dollars per day.  It is indeed ironic, that in a world of plenty, while some die each year of obesity related diseases, others must die of malnourishment.  To be sure, some notable progress towards ending poverty has been achieved.  Significant contributions from the likes of Bill Gates and Warren Buffet will provide greatly needed additional resources for many worthwhile global development projects.  In addition, President Clinton’s Global Initiative has also helped to focus worldwide attention on this issue.  These initiatives are no doubt laudable.  But still greater efforts will be necessary to bring real prosperity to the world’s poor.... Read full article

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The Right Prescription for Infosys

Despite a slowdown in revenue growth from over 40% to 35% during 2007, management at Infosys Technologies Inc. appeared to be pleased with its financial performance during the last two quarterly earnings releases.  In my view, Infosys needs to do much more than simply meet estimates and restate revenue guidance in order to regain investor confidence. Specifically, I believe that the following initiatives would help accelerate its earnings growth and thereby boost investor confidence.   ... Read full article

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Money or Moksha? A Vedantic Perspective

If given a choice between infinite knowledge and infinite money; which would you choose?... Read full article

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India’s Economy Growing at 10%

During a recent interview with CNBC India, Mr. K.V. Kamath, CEO ICICI Bank stated that India’s economy was growing at 10%.  If accurate, the significance of this achievement cannot be overstated.  India has long aspired to fulfill its post-Independence tryst with destiny by emulating the economic success of Japan and China; which sustained double-digit economic growth rates for over twenty years.  Yet skeptics averred that India’s economy would always remain hobbled by its fractious democracy, which made it difficult to push through the kind of reforms that were necessary for achieving double-digit growth.  The lumbering Indian Elephant, it was believed, would never be able to catch up with the Asian Tigers or the Chinese dragon.... Read full article

2008 India Outlook

The Indian economy is likely to continue to grow at 9% per year during 2008 as a result of robust corporate investment.  In many ways, 2008 may prove to be a watershed year for India, as the country crosses several significant milestones, outlined below.... Read full article

2008 U.S. Outlook

The latest U.S. economic data portends a significant slowdown in economic growth – not a recession.   The U.S. unemployment rate has jumped from 4.7% to 5.0%, which is comparable to unemployment levels during 2005 and 1997. Significantly, wage growth continues to expand at an annualized rate of 3.7%, which should help bolster consumer spending (70% of the economy).   ... Read full article