The Strategies continues...

The bigger the company the larger the potential for growth. Citigroup of New York, for instance, makes money in retail banking, corporate banking, wealth management, services for non-resident Indians (NRIs) and a host of other channels. GE also makes money in India in 31 different businesses. "There isn't a better destination, frankly, than India just because of [the] scale of [the] population and [the] availability of employees," said Pramod Bhasin of GE India. "Right now every one of our manufacturing businesses has a significant engineering operation here," added Scott Bayman, GE India's CEO. Two years ago, revenues and orders of the US giant exceeded $1 billion in India. GE now employs more than 22,000 people in India.

But nowhere has the performance of American companies been more profound than in technology. In terms of investment and growth, US companies such as Cognizant Technologies, IBM, Oracle, GE, Cisco, Compaq, and Intel, among others lead the multinational corporations (MNCs) in the information technology (IT) sector.

Nine out of the top 20 Indian IT firms are from the United States. These account for more than 37% of the turnover of the top 20 firms operating in India. These companies are doing well because they bet on India early on. In 1991, Motorola set up its first software center in Bangalore. In 1999, the American tech giant added two chip-designing units around Delhi and a third one in Hyderabad. India is now well-established as a source of software and chip design and as a source of excellent capital for Motorola globally. The number of software engineers employed by Motorola in India has gone from 100 to a current level of 2000 engineers. As a key growth market for Motorola, India has reached a critical inflection point. Even American companies outsourcing work to India have grown in complexity. Seeking simple cost advantages in the form of call centers is passe. Many now seek the expertise of Indian fashion professionals. India for example, is now a major sourcing hub for Reebok International's golf apparel and the accessories brand, Greg Norman Collection. The $100 million brand, which retails at $60 to $90 apiece globally, sources about 30-40% of its total apparel needs from India.
The ultimate reason why the presence of MNCs will only grow in India is this: If globalization is inevitable, so is a presence in India, one of the largest markets and economies of the future.