The business world is being disrupted by the combined effects of growing emerging economies, shifts in global demographics, ubiquity of technology and accountability regulation. Infosys believes that to compete in the flat world, businesses must shift their operational priorities.

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The Flat World Goes Both Ways

by Richa Govil

Yesterday I read that AT&T is now trying to re-enter the Indian long distance phone service market.  This got me thinking about how larger and larger percentage of global companies' revenues now come from emerging economies.  In some cases these countries account for the majority of the companies' revenue growth. 

On the flip side, leading companies from China and India are also increasing their hiring targets from the US and Europe.

Recently ICICI Onesource (Indian BPO company) announced that it is setting up a contact center in Ireland, creating 1000 local jobs.

Infosys has already hired 126 software engineering graduates in the US and plans to more than double the number by the end of the fiscal year.

There are plenty of such examples of companies seeing increasing revenue from emerging countries and creating jobs in developed countries.  As traditional barriers to business break down, companies are beginning to realize the ideal end-state of global operations: employing talent where it offers best value, source where most cost effective, and sell where most profitable.

It is no longer a question of whether this will happen; it is only a matter of how quickly can companies achieve this. 

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Comments

I would personally want to equate flat world with "One World". A lot of US and European companies are failing to realize that it is the fear that is holding them back from taking the same steps that Indian firms are taking.

Having said that a lot has to be done on the cultural compatibility, inter cultural skills, change management and the culture of indecision that is prevalent. No matter what we say they will remain challenges that need to be taken head-on. Both Western and Eastern nations need to gear up and start preparing for some real groundbreaking (yet at low- and mid level and at steady pervasive pace).

I would suggest strategies like:

o Ubiquitous Academia: It should be multifaceted and ubiquitous. At a high school level language courses should be started. Like French, German, Dutch, Spanish, Chinese. Its fun and while having fun kids will learn new skills and prepare them for the future. The same applies to US and European counterparts. Start with programs that offer Chinese, Hindi, Mandarin as additional languages to be learnt.

o Change Agents: These are VERY crucial elements (sprinkled into the corporate and social networks, which are increasingly becoming inseparable, like magic dust) within these "Flat world" enterprizes. They need to stay on guard and constantly work towards the rapidly changing face of our "One World". Its not just the capital but also the cause of educating ourselves on changes and globalization. For the same reason I am always tempted to use the term "Change Activist" instead of “Change Agents”.

We are today looking at Europe, US and emerging markets in the east but the "One World" would mean that that big fat continent we call Africa and not to forget South America need to also be in the loop. (They will be, eventually).

I am not from Infosys but a friend sent a link to this blog.

My thoughts on this topic are quite different from most of the blogs in here. I do not believe the 'World is Flat' as Friedman proposes. If it indeed is flat, I believe it is for few people who are the driving seat and not others (like Indians). And also, I believe that the world appearing flat is an ephemeral phenomenon and is not a permanent one.

More of my thoughts are at:
http://windia.blogspot.com/2006/08/is-world-flat.html
http://windia.blogspot.com/2006/07/why-infosys-cant-be-product-making.html

Thank you,
Sujai Karampuri

This represents a paradigm shift required for organizations to be pleomorphic and tap in to their human resource potential. It is said the success of a company in this interconnected world depends on the power of its network. Flat world represents a movement towards this and this initiative of Infosys to move towards directions represents a fine futuristic strategic thrust. This flat world initiative will certainly lay the foundation for future successes of organizations.

In fact the Economic Times dated 6.9.2006 highlights Prof. Gary Hamel’s insights in to the innovation mindset in organizations. The innovative spirit requires a flat world mindset.

There should be no surprise in this because it is in the inherent nature of the Flat world to make the hiring go both ways. Also, the need for enterpirses to have human resource from varied cultures/countries is strategically important for its own business. I can see how such a variety in resources will bring different perspectives and hence positive impact on corporate innovation, marketing, strategies and hence overall business.

I agree with Sujai that the World is not completely Flat as yet. I strongly believe it is becoming "flatter" everyday and obviously we have long way to go. It is important for individuals/organizations/society/Government to realize and become aware of this paradigm shift and adopt "open" policies that will help them be competitive player in the flat world.

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