The International Journal of Emerging Markets indicates that emerging markets such as Brazil, Russia, India, China and South Africa account for 20% of the world’s GDP and two-thirds of world’s population. With the IT market improving, technological advancement resulted. This has led to India having a vast pool of resources that are highly skilled.

1. 4/2/2012
iPOTT
Getting you there…
Economy in emerging markets
Having looked at importance of globalization and the efforts
CEO Speak taken to gain cultural sensitivity to reduce chances of initial
failure, it is now time to understand the economic factors
influencing the desire to expand in globe. Why would any
company choose to globalize in a particular country? What
To visit this blog Click here. makes it stand out of the crowd? We aim at gaining an insight
into these questions in this article.
iPOTT being an end to end
provider of innovative and cost The International Journal of Emerging Markets indicates that
effective services in the areas of emerging markets such as Brazil, Russia, India, China and
knowledge management, sales South Africa account for 20% of the world’s GDP and two-
enablement and consulting offers thirds of world’s population. With the IT market improving,
a unique and unbiased platform technological advancement resulted. This has led to India
for software product companies having a vast pool of resources that are highly skilled. India
worldwide to reach their target which initially served as a low-cost labor provider is now being
markets targeted as a resource-rich country. It is estimated that 70% of
the world’s growth will come from emerging markets and 40%
of that is accounted for by India and China.
www.ipott.om
info@ipott.com With the tremendous growth, many local companies that
previously offered no competition are now major competitors
to transnational corporations. The shift of economic power to
emerging markets has led to many transnational firms that are
already established in India to initiate activities to acquire a
share in the growth. The symbiotic relationship between
global economies are so tightly interconnected due to these
exchanges that governments and industries will have to
cooperate their ways to adapt to these evolutions.
Looking at it from economic perspective, the key factors
driving this change need to be identified. This is necessary to
introduce changes in business strategy to reflect localization.
It is quite obvious by now that the biggest factor driving

2. economic changes in emerging market such as India is
population growth. Increase in their urbanization and the
growing divide between youth and aged has created space for
large fraction of people who are skilled and eligible to work.
The recent recession has strengthened relationships between
local companies and government further as new initiatives
have been launched to enable better connectivity, which has
attracted more interest thereby creating gradual balance in
global economic power. It is obvious that the emerging
markets will soon create space for new entrepreneurs who are
identifying gaps in market for services targeting low-income
consumers all over globe. Internet marketing and e-commerce
has led us into a new era. Disruptive innovation is now a
common trend in emerging markets.
It is quite probable that the growth will result in winners and
losers. What decides winning factor in emergent companies in
the current context? Entrepreneurs will have to look outward
as adaptations in technology and regulatory changes are
inevitable while introducing a new product and creating a
global market for it by adopting global workforce. Adaptations
to external environment and embracing technology to reflect
these changes are critical to remain trendy and visible. Supply
chain management will play a critical role in the way goods are
packaged and priced reflecting changes in raw-materials’ price
fluctuations and labor cost structures. The trend is further
influenced by national governments trying to reduce cost
structures and focusing on growth agendas. With the advent
of ‘cleantech ideas’ emerging companies have started
incorporating green transportation, renewable energy,
recycling, green chemistry and other energy efficient
appliances right from initial stages to gain a ‘Competitive
advantage’ in long run. According to Ernst and Young, by 2020,
Brazil, Russia, China and India are expected to account for
nearly 50% of all global GDP growth. This has created scope
for high investment activities by investors who are trying to
secure a strong base here.

3. In the next issue we will be discussing more about Economic
factors driving changes in IT product development industry in
India and how this influences Corporate Strategy.