Global recession and emerging challenges for human resources management in india

Archaic globalization Archaic globalization conventionally refers to a phase in the history of globalization including globalizing events and developments from the time of the earliest civilizations until roughly the s. This term is used to describe the relationships between communities and states and how they were created by the geographical spread of ideas and social norms at both local and regional levels. The first is the idea of Eastern Origins, which shows how Western states have adapted and implemented learned principles from the East.

Global recession and emerging challenges for human resources management in india

The opportunity to develop and operate next generation GICs is literally too big to miss for many businesses in numerous industries. The principal driver was labor-cost arbitrage between the United States or Europe and India.

The banking, financial services and insurance industries were early adopters. From —Indian GIC revenues have increased at a According to a recent livemint article citing a Nomura Research report, this compares with a 9.

The livemint article also cites the Nomura Research stating that twenty-seven percent of the Global currently have GICs with the percentage predicted to increase to fifty percent over the next five years.

This edition reviews the global macro outlook, the risk and effects of a trade war, and geopolitical developments in Europe. Read on for our views on the US macro outlook and the Fed, the eurozone and the ECB, and China’s macro outlook and risks. Management consulting as a profession is a coveted aspiration for management professionals. This academic note seeks to define management consulting as an industry, draw its boundaries, highlight the unique contributions of management consultants and consulting firms, and elucidate the challenges faced by the management consulting industry, with a specific focus on the Indian context. Dec 02,  · Foreword. The World Economic Forum’s Risk Response Network (RRN) was launched to provide private and public sector leaders with an independent, impartial platform to map, measure, monitor, manage and mitigate global risks.

Writing for The Economic TimesMalini Goyal sees as a major driver in the growth of GICs the shift in enterprise IT budgets towards digital technologies, such as artificial intelligence AIdata analytics big dataautomation or machine learning, cloud computing, mobile, social and the Internet of Things IoT.

Digital technologies allow businesses to target individual customers and to do so more frequently through more channels of communication.

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Other research shows that executives also want more control over work performed in order to respond more quickly and effectively to new digital IT, especially after it is deployed effectively by competitors.

This has created a unique opportunity for GICs along with the real challenge to evolve from centers set up to perform a limited number of discrete IT and business processing functions into multifunction centers providing innovative value-added services in the digital economy.

India is considered to be the software capital of the world, and it has a very large pool of highly qualified software engineers and excellent educational institutions.

Global recession and emerging challenges for human resources management in india

GICs have the ability to attract superior talent through a combination of favorable compensation packages and the attractiveness of working for well-known U. Companies have more control over captive GICs than third party outsourcing vendors, which allows companies to respond more quickly to changing priorities and industry trends.

When vendors are paid on a FTE basis, there is arguably little incentive to automate or digitally streamline processes. The favorable cost arbitrage between labor rates in the United States or Europe and labor rates for similarly qualified employees in India can provide substantial multi-year cost savings.

For large enterprises, savings can be in the hundreds of millions of dollars over a multi-year period. GICs may also compare favorably to offshore outsourcing from a cost standpoint. While GICs often pay higher wages and benefits than outsourcing vendors to attract top talent, they eliminate vendor profit margin.

In addition, GICs can reduce the cost of managing third-party vendor relationships. Some companies set up and manage GIC operations themselves and only retain local market experts in India for discrete tasks e. However, that approach carries the risk of encountering unanticipated local issues due to a lack of relevant experience in, and understanding of, the regulatory regime and culture in India.

Operations and sometimes ownership rights are transferred at the end of the term after the enterprise has hired sufficient local talent and gained the requisite local expertise.

The legal arrangement may be structured as a Joint Venture or a Services Agreement. However, these advantages come at a cost.

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In addition to being compensated on a fee-for-service basis for ongoing services, the BOT partner will likely negotiate a substantial pay-out at the end of the term based on GIC cost savings, productivity improvements and other performance-based success metrics. This back-end pay-out is beneficial in aligning the interests of both parties in the success of the GIC, but can have a material impact on overall cost savings.

There are a multitude of interrelated corporate, tax, regulatory, commercial, operational and contractual issues that need to be addressed, including the following: A PLC offers the advantages of 1 a well-developed body of corporate law, 2 established ways to bring in additional investment through External Commercial Borrowing ECBand 3 tested ways to deal with operational matters.

An LLP provides certain tax advantages, such as avoidance of Indian dividends distribution taxes and easier repatriation of profits, but it is a relatively new type of legal entity without a well-established body of case law in India or tested ways to deal with operational matters.

The relative importance of tax and corporate considerations should be weighed in selecting the most suitable legal entity for the GIC. Setting up a GIC requires careful tax planning that takes into account both domestic and international tax laws and foreign exchange requirements.

In addition to the tax implications associated with the choice of legal entity for the GIC: Companies need to determine the appropriate entities within their corporate family from a tax standpoint to contribute capital to, hold ownership interests in, and receive repatriation of profits earned by, the GIC.

Charges for the services provided by the GIC to the company and its affiliates need to comply with transfer pricing requirements under OECD Transfer Pricing Guidelines as well as domestic and Indian tax laws. Among other things, consideration should be given to potential excess accumulations of profits within the GIC as a result of transfer pricing markups.

Special Economic Zones SEZ in India provide substantial tax and economic benefits, including tax holidays and exemptions from various taxes and duties.

The caliber of personnel hired by the GIC will play a critical role in the value the GIC brings to the enterprise company. Accordingly, companies would be well advised to engage a talent acquisition firm in India that has a strong track record of recruiting top-tier talent in India for their clients.

In offering employment to and hiring candidates, companies should be aware that employment laws and practices are very different in India than in the U. Companies should also take appropriate steps to mitigate the risk of dual employment claims made against both the GIC and its deeper pocket parent companies.

Some companies have experienced challenges in securing desirable office space to accommodate growth in their GICs.These characteristics of human capital prompted Harlan Cleveland, former President of the World Academy of Art and Science, to observe that “the only limits are the limits to imagination and creativity” They led Aurelio Peccei, founder of the Club of Rome, to argue that human capital is the most underutilized of all forms of capital Global In-House Centers (GICs) were first seen in India in the s as an alternative to IT outsourcing arrangements with third-party vendors.

The principal driver was labor-cost arbitrage between the United States or Europe and India. The banking, financial services and insurance industries were early adopters.

Global In-House Centers (GICs) were first seen in India in the s as an alternative to IT outsourcing arrangements with third-party vendors. The principal driver was labor-cost arbitrage between the United States or Europe and India. The banking, financial services and insurance industries were early adopters.

Management consulting as a profession is a coveted aspiration for management professionals. This academic note seeks to define management consulting as an industry, draw its boundaries, highlight the unique contributions of management consultants and consulting firms, and elucidate the challenges faced by the management consulting industry, with a specific focus on the Indian context.

Globalization or globalisation is the process of interaction and integration between people, companies, and governments regardbouddhiste.comization has grown due to advances in transportation and communication technology.

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