So thats one. Theres obviously country arbitrage in terms of not playing that card. There are also things like cost of living, difference in terms of equations that you could also use as justification. But the skills shortage is the biggest and greatest worry. Everything else goes up and down. So sometimes its a benefit, sometimes its not. But with skills, its a structural problem.
What do you see as significant growth opportunities during the recession, and why?
During this period? Significant growth opportunities. Were very good at transformation, and we believe were at a point in the market globally where its an inflection point. Businesses are going to need to transform, governments are going to need to transform, financial systems are going to need to transform. The mechanisms we use for governance are going to transform, and I think theres probably an emergence of a new model, and well see it in the next three or four years. Were good at that work. Weve been helping businesses transform to be more effective and more efficient in using smarter tools for the last 30 years, so I think were well-positioned to actually help make that transformation.
What is this emerging new model that you just referred to?
Well, its a new model of governance of financial institutions. Its a new model of banking that will need to emerge because I dont think the current system actually works.
The system is breaking down and we are in need of a new system. Is there anything outsourcing companies like you will do to help build this new system, in terms of providing tools and all that?
I think so, I think well be big participants in that.
You just referred to the lack of mathematics scholars and physics scholars in these developed countries, and how developing countries such as India and China are taking advantage of it in terms of providing outsourcing services. Thats when I was reminded of Obamas emphasis on education in America, trying to refurbish the educational system. So Im trying to come back to this point about US president Obamas cessation of tax incentives for companies that use outsourcing models and outsource jobs to countries such as India. Will it have any impact on your business, or on outsourcing countries such as India?
I dont think so. I think tax breaks is just a nice-to-have, so any tax incentives you get from any government will be a nice-to-have that you will add to your business case. I think the core fundamentals of why you outsource to offshore comes from, 1) the capability that it brings to your business, 2) the flexibility that it brings to your business, and 3) the fact that you can scale up and down without having to go through large and drawn-out processes to scale up and down, looking for skills that might be too expensive. So, I think its actually immaterial.
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