Globalization of Industry

Innovation and adaptation are words commonly echoed throughout the manufacturing industry. To survive in a demanding fast-paced economy, companies must alter their current business practices and accommodate the needs of a growing market.

Constantly challenged by aggressive global competition and a “need it now” economy, leveraging technology such as video and web conferencing, provides manufacturing companies with a way to not only survive, but to thrive. These tools equip businesses with a solution to drastically reduce operating costs by giving them options to maintain sustainability and further expand business into a global market. Video and web conferencing can be used to:

Conduct training sessions with distributors – There is no need for training teams to spend time and money travelling around various parts of the world to inform distributors on production line status updates and changes. Training staff can stay in-house and use video and web conferencing to conduct one large training session with all distribution locations at the same time.

Collaborate remotely with suppliers and vendors – Instantly connect manufacturing locations with suppliers and vendors. By keeping the information moving between them, there is less chance of supplies running out, ultimately reducing the product’s time to market.

Oversee product production and life cycles – Management teams and executives can use video conferencing to participate in product inspections, remotely track product development progress and make sure things are running smoothly without having to physically be there.

Educate, train and update staff – When employees are spread around different locations, it is hard to keep everyone on the same page. Holding regular online meetings, whether to release updates, train new staff members or for general education unites staff members and builds employee moral.

Connect inaccessible teams for brainstorming sessions – Development teams in Los Angeles can sync up with teams in London to go over product design progress, development problems and work together on new ideas.

Reach out to experts for advice – When a problem arises in development or production, video and web conferencing provides flexibility to immediately maximize expert resources without waiting for them to come to a specific location.

Find and screen offshore partners – Hold video interviews with potential partners who may be located over seas. Get a better sense for their business environment as well as provide access to virtual equipment demonstrations and plant tours.

Gain new customers and retain old ones – Being readily available to a customer builds up a businesses brand. When customers need help or need to have items repaired, technical staff members can immediately conduct a visual diagnosis as well as offer remote instructional support.

INTRODUCTION

Globalization in India started in the early 1990′s. Industrialization is the reason behind globalization. Business is the key. When a company operating in a home nation establishes its subsidiary in other nations (host nations), it becomes an MNC and there starts the process of globalization wherein a local company serves the entire world with its products and services. The advent of Internet and the ensuing “new economy” has opened up a plethora of new business opportunities – and an “inevitable” number of business casualties. Shapiro and Varian (1999) argue that while technology changes – economic laws do not. This is globalization in company’s perspective. Globalization in India has transformed the country’s system. Presently India is regarded as an economy dominated country rather than politics driven, as it was earlier. Political dominance has fallen significantly these days. Adoption of Globalization in India and liberalization principles has widened the horizon of country’s Consumers worldwide. Consumers in India have become more conscious. Market information in India has become clear.

Liberalized policies have led the industrial sector to grow at a faster pace. BPO, IT, ITES, Retail and Insurance sector have performed well. Both male and female have got equal opportunity in that sector. The success for India is the reduction in gender inequality in India. More over, development in education and awareness is largely marked in the country in the era of Globalization in India.

INDIAN ECONOMY – HIGHLIGHTS

India is among the five countries sharing 50 per cent of the world production (or GDP).
FDI inflows have jumped by almost three times to US$ 15.7 billion in 2006-07 as against US$ 5.5 billion in 2005-06.
The aggregate income of the top 500 companies rose by 28.4 per cent in 2006-07 to total US$ 469.51 billion.
India’s National Stock Exchange (NSE) ranks first in the stock futures and second in index futures trade in the world.
Twenty Indian firms have made it to the list of Boston Consulting Group’s 100 New Global Challenger Giants list.
According to a study by the McKinsey Global Institute (MGI), India’s consumer market will be the world’s fifth largest (from twelfth) in the world by 2025.
The number of companies incorporated has increased at an annual average of 55,000 companies in the last two years to 865,000, from 712,000 companies at the end of 2005.
Four Indians and seven Indian microfinance companies make it to the Forbes list of Top10 world’s wealthiest CEOs World’s Top 50 Microfinance Institutions, respectively.
India has the most number of private equity (PE) funds operating amongst the BRIC markets.
Mumbai has been ranked tenth among the world’s biggest centres of commerce in terms of the financial flow volumes by a survey compiled by MasterCard Worldwide.

Another significant aspect has been the broad-based nature of the growth process. While new economy industries like Information Technology and biotechnology have been growing around 30 per cent, significantly old economy sectors like steel have also been major contributors in the Indian growth process. For example, India has moved up two places to become the fifth largest steel producer in the world. And with its manufacturing and service sectors on a searing growth path, Lehman Brothers Asia estimates India to grow by as much as 10 per cent every year in the next decade.

CONTRIBUTION OF INDUSTRIES TO INDIAN ECONOMY

Industrial revolution is the stepping stone for globalization. In India, the contribution of different sectors is immense and all contributing to the fast growth of the Indian economy.

The IIP data show that during April-November 2007, cotton textiles grew by 5.5 percent. During 2006-07, textile exports recorded an increase of 6.9 per cent over 2005-06. During April-October 2007, textile exports increased marginally by 1.49 per cent on year-on-year basis. Indian Government has given a lot of subsidies to the textile industry through various fund schemes and textile parks. The rate of growth in the paper industry picked up to 8.7 per cent during 2006-07, but dropped to 1.6 per cent during April-November 2007.

Leather products, which contribute significantly to employment generation and export earnings, registered an impressive 12.2 per cent growth during April-November 2007. The chemical industry is growing steadily at 10%. The value of pharmaceutical output grew more than tenfold from Rs. 5,000 crore in 1990 to over 65,000 crore in 2006-07. India is now recognized as one of the leading global players in pharmaceuticals. While the production of rubber footwear grew by 4.7 per cent, sheets (PVC/rubber) grew by 18.8 per cent. PVC pipes and tubes, which have the highest weight in the product group, grew at 27 per cent during April-November 2007. Crude oil production during April-November 2007 was 22.69 million tonnes (MT) as against 22.56 MT during the corresponding period in the previous year, showing a marginal increase of 0.60 percent. In this sector, the demand will be always greater than the supply and India has to divest and encourage private players like Reliance to enter into the petroleum industry.

The cement industry recorded a growth of 7.72 per cent (provisional) during April-November 2007. The production increased from 99.99 MT during April-November 2006 to 107.71 MT during April-November 2007. Indian steel companies have marked their diversified presence in the global market, effected mainly through the establishment of the state-of the-art plants, continuous modernization, and improved energy efficiency of plants. Mittal Steel has created a buzz all over the world with its recent merger with arcelor. While overall industrial production grew by 9 per cent during April-December 2007, importantly capital goods production rose by 20.2 per cent compared to 18.6 per cent during same period in 2006. Services grew by 10.5 per cent in April-September 2007, on the back of 11.6 per cent during the corresponding period in 2006-07. Manufacturing grew by 9.6 per cent during April-December 2007, on the back of 12.2 per cent growth during same period in 2006-07. Core infrastructure sector continued its growth rate recording 6 per cent growth in April-November 2007. While exports grew by 21.76 per cent during April-December 2007, imports increased by 25.97 per cent in the same period.

ROLE OF INFORMATION TECHNOLOGY

The IT/ITES industry’s contribution to the country’s GDP has been steadily increasing from a share of 1.2% in FY98 to 5.2% in FY07; it has contributed to foreign exchange reserves of the country by increasing exports by almost 36% and its direct employment as grown at a CAGR of 26% in the last decade, making it the largest employer in the organized private sector in the country.

In the last two decades, the Indian IT/ITES industry has contributed significantly to Indian economic growth in terms of GDP, foreign exchange earnings and employment generation. The industry has been the trigger for many “firsts” and has contributed not only to unleashing the hitherto untapped entrepreneurial potential of the middle class Indian but also taking Indian excellence to the global market.

The current and evolving role of IT/ITES industry in India’s economy is well established. The sector is proving to be the major growth pole within the services sector, which in turn drives several economic indicators of growth in the country.Export earnings in FY08 stood at approximately USD 40.0 billion with a growth of 36%.Direct employment in the sector is expected to be 2.0 million by end of FY08 growing at a CAGR of 26% in the last decade, making it the largest employer in the organized private sector of the country. IT Industry is spearheading India global.

CONCLUSION

According to some experts, the share of the US in world GDP is expected to fall (from 21 per cent to 18 per cent) and that of India GDP to rise (from 6 per cent to 11 per cent in 2025), and hence the latter will emerge as the third pole in the global economy after the US and China.

Indian Economy experienced a GDP growth of 9.0 percent during 2005-06 to 9.4 percent during 2006-07. By 2025 the India’s economy is projected to be about 60 per cent the size of the US economy. The transformation into a tri-polar economy will be complete by 2035, with the Indian economy only a little smaller than the US economy but larger than that of Western Europe. By 2035, India is likely to be a larger growth driver than the six largest countries in the EU, though its impact will be a little over half that of the US.

With the arrival of the globalization, the industry which is booming is the insurance industry. Many companies from all over the world are venturing into this insurance business. In developed as well as underdeveloped countries there are lots of scope in this sector. The contribution of ERP is great in the sector of insurance for simplifying the big and the small operations.

Especially in three areas which are very vital this Enterprise resource planning has played an important role in this business sector. For the betterment and interest of the business ERP has facilitated coordination between the insurer and agents by solving the problems of both the fields. ERP has provided the insurer and the agent a common platform. By this, now it has become possible to keep eyes on the agents and the ERP has eased the transaction process also. Insurance sector is famous for inefficiencies and procedural delay. ERP has helped this sector to curb this problem. ERP has helped the insurance sector on various issues. Some of them are-

Reducing the procedures-It was very difficult for the insurance companies prior to ERP to go ahead with procedures in time. It compiles the assessing damages, settling claims, difference between insured value and loss in time besides litigations. With the help of Enterprise resource planning software the data of different departments are integrated in one common data base. This has solved the problem of the tedious job. In insurance company the different departments like settling claims and litigations do not depend on each other due to which efficiency is improved in their departments.

Rectifying Information Flaw

In insurance sector executives are responsible for receiving the details of each and every minute process. If the processing information is delayed the executives can’t go ahead and do the needful.

Insurance companies are always at the court’s mercy and in a helm. Many claims of the insurance are at the courts intervention. They have to pay the cost of litigation even if the claims are in their favor.

ERP is able to solve these entire problems very easily and it also saves the money, and cost of information of the company. Insurance sectors are thereby helped by the ERP to remove all the set backs of the company.

Performance of the Agents are Checked

The important part of the insurance sector is the agency. Selling, marketing and giving service are the important aspect of an insurance agent. After the intervention of ERP each and every transaction is updated. This step has helped the insurer also. So after the intervention of the ERP now, there is a transparency in the insurance sector. Every one is getting the opportunity to know each and every thing about the insurer and the agent.

Globalization and the Internet are a boon not only to the legal transcription industry but also to the legal outsourcing and BPO industry. It is not just legal transcription but there are also various other legal services (like legal research, legal coding, e-discovery, patent analysis etc) that are being increasingly sent out of the country for execution. Forrester Research has rightly projected that over $ 4 billion worth of legal work will be outsourced to India by 2015. With the opening up of the free market economy the revolution has created the concept of cost savings based outsourcing, and it is this that prompts US entities to outsource legal transcription and many other legal processes. Thus today we see works like legal documentation, legal research, litigation support etc are being successfully outsourced and expertise availed from legal professionals who might be located elsewhere on the globe.

Law firms, court houses and advocates can order instant legal transcription services by using different cutting edge technologies. Dictations can be recorded on a tape or a recording machine or a PC, and the audio files are sent over the Internet for transcription. Or now it is even directly sent by just dictation via telephone. The dictations sent over the telephone get recorded at a different location which is immediately worked upon. They produce transcripts of high quality and works are supervised by legally qualified / experienced law professionals.

Outsourcing of legal transcription to countries like India allows for low cost transcription with rates as low as 8 (eight) cents per line of work. Most companies now take a lot of care about the security of documents that are sent online. This becomes possible by the encryption of all the files before being transmitted over the web. By offshoring / outsourcing legal transcription works to professional Asian firms who use cutting edge technologies US law firms are assured of benefits like,
Total security

Low turnaround time

High accuracy

Low price

Delivery in any format