Things are suddenly looking for bright for India Inc. A delegation from Ohio is here to invite Infosys to set up a shop in Cincinnati. TCS has already set up a development centre in Cincinnati. Their intention is to bring Americans back to the technical fields, create employment and boost the economy. I think the world has come full circle. Not too far back in the memory lane, everybody in the US is crying about outsourcing. There is also a popular slogan “you have been Bangalored” in the US. Now Indian IT companies are coming to rescue the US markets. By opening up new development centers and winning their outsourcing contracts India is indispensable to the US and the world.
A US bank, Union bank of California has awarded a contract worth $15 mn to Infosys. Infosys has to race with one more vendor to win the contract. That vendor is TCS. When Obama is talking against outsourcing, this California bank has invited only two vendors (both Indian) and reached an agreement. Why did this bank not invite more bids? Is it the reputation of the Indian companies that sent other companies into the oblivion? Whatever it is, this is one more reassurance that outsourcing and India are inseparable.
The economic slow down and the recession talks did not slow down India’s mobile growth. In fact the mobile subscriptions reached 10 million for the month of September which is more than the previous month. It gets even better.
Norway which is not affected by the crisis is planning to invest $2 billion in Indian equity. That should balance some of the FII outflow’s affecting the capital markets. Norway will be investing through its sovereign wealth fund. 2 billion dollars in the current market conditions looks like an obscene amount. It would be interesting to see how our markets react to the news. Unlike other sovereign wealth funds, Norway’s fund follows some regulations. It has dumped its wal-mart’s shares due to the Wal-Mart’s track record. With such regulations for running a fund which ever company’s receives the infusion of Norway’s money would see a surge in their stock price.
The world and India has put in great confidence in India Inc. Is it a blind faith or a sound investment? Only 2009 can tell.
Until then India will be shining one more time.