WEF-HCL 2 LAST
PTI | 06:01 PM,Jan 26,2012On whether a low-cost business model can be retained with On whether a low-cost business model can be retained with local job creation in the West, Nayar said that partnership with the educational institutes, local governments, communities and customers would help in keeping the costs affordable. "Also, the cost per person is not going up in the US, but it is going up in India," he added. Nayar said the challenging economic conditions would be seen by some companies as a threat and they would push brakes. But there would be some that would see it as an opportunity and push accelerator while adapting to the requirements of the new economic scenario, he said. "The challenging economic conditions have become a new normal, as they have moved from the US to Europe and might come to Asia as well. But rather than worrying about that, we should get prepared," Nayar noted. Asked about the impact of euro crisis on Indian IT business, he said, whenever there is a crisis, it starts questioning the established regimes. So, European companies are today questioning all their relationships with their existing IT vendors and are reaching a conclusion that they need new partnerships with companies like HCL to get a better cost-value advantage. "So, suddenly a bad economic situation has opened up the market and you would see that benefiting the Indian IT companies," Nayar said. When asked why not all Indian IT firms are benefiting, he said that you need to do business the European way when dealing with companies in Europe. "Some companies have absorbed the European way of the business, but some others are trying for Europeans to absorb their way of business and therefore were not that successful," he added.
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