Showing posts with label Europe. Show all posts
Showing posts with label Europe. Show all posts

Monday, April 15, 2013

Making sense of the incorrigibly Cognizant!

Cognizant’s ability to consistently achieve astronomical revenue growth has surprised many. Will it’s new strategic outlook be able to keep the ‘shock & awe’ coming?

While debating on a particular strategy related to employee & customer orientation in a technology company with a top CEO, I gave the logic that works best when you are trying to escape an argument – the proof of the pudding is in the eating, and the particular company was doing well. The CEO smiled at me and nodded his head, saying that even the most unconventional strategy looks great when someone successfully applies it. The whole world then analyses why the strategy worked for that unique organisation and feel we have got collectively smarter through the entire process. The fact is, perhaps that next time too, we will only identify the merits of an unconventional strategy when it has met the benchmarks of success.

Though Cognizant is not the company I was discussing, there is no doubt that the successful rise of this company which has become the flavour of the season in the IT space. Cognizant, which beat Wipro in terms of revenues to reach the number 3 position among Indian IT players in the quarter, saw revenue rise by 34.4% yoy to reach $1.48 billion and net income reach $208 million, a growth of 20.78% yoy. And the surprising part is that IT experts weren’t really counting on the company delivering these numbers, as it still got 77.8% of its revenues from North America, a region that the IT world is looking to slowly derisk from. Annually, the company is showing a growth of 40% on an average over the past five years, which also include the recessionary phase. It makes sense to understand what makes the company stand amidst this environment, and whether the growth is indeed sustainable.

There were a number of things that Cognizant, a relatively young upstart did that made it different from its peers since it commenced operations in 1994 as the IT development and maintenance services arm of Dun & Bradstreet. The first was its initiative to shift headquarters to the US within two years of commencement of operations and ensured that its top management was where its clients were. Linked to this decision, it also pioneered and trademarked the ‘Two-in-a-box model’, which combined the global delivery model with the relationship manager onsite to give clients a differentiated service experience.

Cognizant is extremely dependent on employees in India, which account for over 75% of the workforce. In that sense, it ensured an effective utilisation of both worlds, and other Indian companies, even though their business is also largely driven by US and Europe, developed a global positioning much later. In fact, Cognizant is also lobbying for change in H1B visa norms, and CEO Francisco said at the CEO Council recently on outdated immigration laws, “Millions of foreign skilled professionals are in legal limbo due to a massive backlog for permanent resident visas, hampering their ability to fully contribute to the US economy & discouraging talented foreign professionals to consider working or starting a new business in US.”


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face

Friday, April 12, 2013

B&E Indicators

Global AUM recovered further in 2010

Overall, 2010 was a better year for asset managers than 2009, confirming the rebound from the global financial crisis. Assets under management (AUM) continued to grow and profitability improved, easing some of the pressure on industry participants. In 2010, the global value of professionally managed assets rose by 8% to $56.4 trillion from $52.4 trillion in 2009. In fact, global AUM surpassed the previous year-end high of $56.2 trillion achieved in 2007. Still, there was wide regional variation in AUM expansion in 2010. While Latin America, with an increase of 18%, posted the strongest growth, AUM in North America rose by 8%. AUM in Europe too rose by 7%, but with considerable variation across countries. However, Japan and Australia, the two largest markets in the Asia-Pacific region, posted a combined AUM increase of just 2% in 2010. In emerging markets other than Latin America, AUM rose by 10% in South Africa and the Middle East (combined) and 11% in Asia (excluding Japan and Australia), certainly less rapidly than in the pre-crisis years.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 

Friday, January 25, 2013

The land of snakes, elephants and...growth

Ten reasons why India would grow almost as strongly as it has done in the past many years

Let’s demolish some myths and finally bury some shibboleths while talking about the Indian economy. And let’s do that with unadulterated facts; not prejudice and perceptions. The most pernicious one is the one related to that fancy term called ‘de-coupling’. Last fall, when the meltdown started in Wall Street, many in India insisted that we will not be affected because we are not really all that integrated with the global economy. And now, we have the same set of people saying that we are quite integrated after all; and we will feel the pain. That is utter nonsense as historical data bear out. Even during the old glory days of crony socialism, when the Indian economy was inward looking, global economic shocks always adversely affected India.

In 1967, when Europe and America were hit by a crisis of confidence, the Indian economy literally tanked. In 1973, after the oil shock roiled the global economy, GDP growth rate collapsed in India. In 1979, after the second oil shock, GDP growth rate collapsed all over again and India went to IMF for a bailout. When the global economy was entering a mini recession in 1990, the Indian economy again collapsed and the powers that be again went hat in hand to IMF. GDP growth rates in India tumbled yet again after the East Asian financial crisis of 1997. The ‘dot-com’ bust across the world in 2001 again led to growth rates crashing in India. So let’s stop fooling ourselves with this ‘de-coupling’ nonsense. The Indian economy will definitely be affected during the ongoing crisis. We can’t wish away bad news.

And yet, there are very strong reasons why the Indian economy will be the most successful one when it comes to riding out the current storm. And there is little doubt that it will be the first economy to emerge stronger with a more solid foundation of sustained growth. Surprised with such a statement when all you get is hysterically bad news from media vehicles? Don’t be. Here are the ‘fact’ based reasons why:


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Wednesday, December 19, 2012

Spot on Tom!

Malthus debate surges on today

Since centuries, experts have predicted that human needs would outpace the earth’s growing resources. This is what Thomas Malthus published in his research named An Essay on the Principle of Population in 1798, popularly known as Malthusian catastrophe. In simple terms, Thomas predicted that the tendency of population to grow faster than the food supply will eventually keep most people at the edge of starvation. During the Industrial Revolution, the first escape from the Malthusian trap occurred when, in England, around 1790, the efficiency of production accelerated to outpace population growth; thus allowing average incomes to rise and purchase the increased production. In the rest of Europe and East Asia, populations had also long been trained to handle the Malthusian trap of their stable agrarian economies. Their workforce easily absorbed new production technologies.

But Julian Lincoln Simon’s criticized the Malthusian philosophy and argued that population is the solution to resource scarcities and environmental problems, as a decrease in per capita availability of resources makes [or forces] people and markets innovate.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles.