One has to question whether this talk of moving to the high end is a matter of sour grapes on the part of Indian companies that increasingly find it difficult to compete in their initial market
NEW YORK (PRWEB) May 19, 2008
Mr. Kapoor was part of a panel focused on "The Rise of India," which explored a wide range of issues pertaining to the recent growth of the Indian economy and the challenges it faces in the future. Asked whether the torrid growth of the Indian services sector is likely to continue, he remarked: "While I'm bullish about the sector over the long run, it certainly faces headwinds in the next few years."
Mr. Kapoor went on to explain that the strengths that initially triggered explosive growth—plentiful skilled labor, low costs, and an absence of serious competition from other countries—are all currently under pressure. "Costs in India are now often higher than in the United States, middle management is quite scarce and the Philippines has come on strong as a credible alternative to India," he said.
Asked whether companies in India should focus on "higher-end" services, he remarked that it was not clear that the grass was so much greener at the high end. "One has to question whether this talk of moving to the high end is a matter of sour grapes on the part of Indian companies that increasingly find it difficult to compete in their initial market," he commented.
Born in India, Kapoor is now a well-respected business leader in the U.S. He heads up one of the world's largest call center companies.
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Editor's Note: An audio file of "The Rise to India" panel is available at http://www.iqor.com.