Interview Questions

Full Interview with Aroop Zutshi

Aroop Zutshi:

I think India is definitely on the road; the only question is about the kind of speed and curves we shall see. But this is sure: we shall see a stronger Indian recovery. There will be relatively sharper improvements in the Indian economy compared to the world economy. 2010 is going to be a significantly better year for Indian companies. There is still a largely un-penetrated domestic market, which represents a huge opportunity. Combine improvements on the global scene with domestic demand and India is on to something really big.

Aroop Zutshi:

There are multiple sectors. ITES is certainly in  good recovery mode. Other sectors which will show promise are transportation and logistics. I can see good growth in the energy industry too; this includes generation, transmission, distribution, storage and renewable energy. I think we will see a lot of growth in those areas because if India is to grow as a market, there is no way that can be achieved with existing infrastructure.

One of the other areas that will impact the entire IT industry is green. We are going to see a significant number of new products and services with a green perspective. Green will drive the recovery a lot more than it has done in the past. Consumers are getting more knowledgeable and more interested in using products and technologies that are green. That will stimulate the market for new types of products
and services.

 

Aroop Zutshi:

Sectors that will take a while to recover at a global level are the automotive industry and housing and real estate. In India, I see a relatively faster recovery but globally I see a slower comeback. I think defense will see a bigger resurgence but the commercial airline industry will take a little longer to recover, simply because travel is quite restricted and businesses have not quite grown up so much that they allow people to travel.

 

 

Aroop Zutshi:

The reality is that IT is such a ubiquitous industry, it cuts across all verticals. So I look at IT to get an upswing in all verticals. It touches everybody, it has the greatest influence. It may be hyped, but it is very much a part of our lives, like it or not.

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On the other hand, I believe that telecom is an industry that is a core sector industry now. It helps communicate, share information and it should get more attention. It doesn't get the same level of importance that IT gets, but it should.

 

 

 

Aroop Zutshi:

From an analyst perspective, we are going to see significant improvements in some sectors. These include a stronger manufacturing and retail industry, a refreshed technology mode and some rural markets being developed. The benefits of the economic upswing have been relatively restricted to a few Tier-I and Tier-II cities in this country. I think more penetration will occur over the next few years and when this happens, India's GDP will easily do 7 to 8 percent.

 

Aroop Zutshi:

I think some of the mega trends that I see globally could also have an impact on India. Mobility is a big mega trend, with more transportation systems and things like electric vehicles coming up in almost every part of the world. Similarly, climate change is another big issue around which a lot of things are happening in the world. I also see a lot of peer-to-peer networking, that's why I see significant emergence in networking websites. These are global mega trends and India cannot avoid them. We have to figure out how we can leverage a Twitter to communicate our value provisions, our products and our services to the customer. These things will impact the way we do our business in the future. Companies have to be adaptive. If your competitors are doing things differently, you better be comfortable with these mega trends to be able to meet them head on.

 

Aroop Zutshi:

I have seen three economic downturns but this has been the worst. Economic downturns are humble reminders that not everything will always continue to be rosy and that business cycles can be treacherous. When financial systems collapse, there is little people can do. What makes it tougher is that during tough times you need financial support the most.

Companies now realize that they have to create a structure - complete with best practices - within the organization. They need to have the immunity and the power to fight back what is happening outside their walls. They need to re-invest in the business - yet ensure they don't over-invest.

What we saw in many companies globally was significant amounts of over-investment. When revenues declined, their capability to move costs around was diminished. Because of that there was an incredible pressure on margins which put pressure on cash. I am hoping that companies learn that they need to build long-term, sustainable and agile businesses, and that this downturn is the last in our lifetimes. Yet I know that ups and downs in business are common, and that they will continue
to happen.

 

Aroop Zutshi:

I do, especially those industries that were exposed to global markets. They have learnt that they have to be equally agile and adaptive to what is happening in the outside world because their businesses are now much closer. Did they move fast enough? Probably not. They could have been a little more agile. They were, of course, living in an environment which allowed them to think that the great momentum would continue.

That said, I think the ITES industry saw some quick adjustments. They were able to handle the recession effectively. Of course when things get tight in other parts of the world there is a natural flow of business coming this way, since companies in those parts of the world need to cut costs.

I think one lesson everybody has learnt is that we have to continually monitor the business from a 360-degree perspective. We can no longer stay focused on the customer or the competitor; we need technology, environment, competitors, industry integration, all of them. It's a very challenging world, and that's why we need all this perspective.

 

Aroop Zutshi:

I believe so. I think all IT, ITES and semi-conductor companies now have to live in a different world. They have to realize that competition is no longer domestic, it's global and customers are demanding more value. The customer base is getting extremely price conscious so solutions that provide greater value at much lower price points have to be figured out.

 

 

Aroop Zutshi:

Absolutely. I think every company has two types of challenges. One is internal and the other is external. Internal challenges are where companies can implement strategies to fix their challenges. It's in a much more controlled environment.

What companies don't have a handle on are the external challenges. And that's what the marketing function does: to understand - from a 360 degree perspective - what a business' customers need and what is competition is up to.

Awareness is also needed on economic issues that are likely to affect the market including government policies, import-export duties and trade regulations. We should also know about the restrictions in place for marketing like the collateral that we can produce and the tools that we can use. For example, in many countries of the world today, e-blitzing is no longer allowed. We need to be aware of these changes in our external environment.

 

Aroop Zutshi:

 

Certainly, key for India, besides all the technology and products, is a continued focus on infrastructure. Not only bridges and roads, but also IT infrastructure. We need high speed Internet connectivity. Telecom infrastructure is good but we need it to be better. We need more value-added services. I think this is the moment for India to shine. Given the stability of the present government, we can continue to build on the policies that have been set, and build an environment that's more conducive to business. This country has the potential to be in the top 10 and even the top five economies of the world in 10 to 15 years. Already, at the rate at which it is moving right now, it will surpass the Japanese and Chinese economies in the next  10-12 years.