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Outsourcing to markets like India is not considered as a cost cutting factor any more. Many company have started realizing that the winning story remains in expanding markets and adding new customers to the list. Companies are seeking new area like Brazil, Russia, India and China to explored and keep the winning streak.
India, which is seen as the most potential market, is second only to China. Every fifth company wants to sell their product in this part of the world. Most of the companies believe that globalisation is the best thing happened to them, as they know it is good for their business. This trend of globalisation is the need of the hour and there is no stopping it.
Globalisation, again is not termed as a low cost affair anymore, it is more about gaining new ground and accessing more market and customers.
Executives in developing countries are also positive about globalisation. "They are unanimous that its not a threat but an opportunity; they worry less about multinationals coming into their market. Only less than 10% of the people interviewed are of the opinion that globalisation will have some negative impact on their organisation.
While the other countries hail setting up their market in India, they also express their strong concern towards issues like corruption, poor education and health systems. These are the biggest worries of some of the chief executives in developing countries. It makes a great impact when people across the world starts thinking twice, and this difference later becomes a burden on how to carry the business forward.
Most of the global investment has been centric towards countries like - Brazil, India, China and Russia. But a survey taken later differ this statistics. Among the above countries, the most favoured destination is China. Nearly four fifths of companies have a policy to enter the Chinese market, while 55% hope to sell there within the next three years. Almost 50 percent of all companies state that low cost is the only thing that drives this companies to do business in these countries, about three quarters hope to get access to new customers.
As stated above India is second, with 64% of companies seeing "major market prospect", while less than half recognize such opportunities in Brazil and Russia. Until now people believed that it is all about making cheap things in China and selling to the west. But the perception today is different about China, which represent a potential consumer market. India, though scores high for its highly skilled workforce.
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