Can the Indian CEOs follow suit?

LinkedIn Question by Raghav Rao:

Can the Indian CEOs follow suit ?

True this is indeed a tough time and companies are finding it extremely difficult to optimize the costs. While the single digit hikes have become norm of the day for the engineering staff, can the senior management be left far behind. Is it not the time that the senior management voluntarily offered to surrender part of their earnings in these 'difficult times' ? Why not the India Inc - It software / product companies take a cue and go ahead with these kind of austerity measures to enhance the bottom line. Let us hope good sense will prevail and most of the companies follow suit. Please go through an interesting article on the subject www.hrinindia.blogspot.com which should be an eye opener for many of us who are contemplating similar steps.

My Answer:

Dear Raghav,

It's high time we changed our mindset. We need to move from being cost-focused to value-focused. The key question in front of us should be "How do we create more value for our customers and move up the value chain?" The US and Global economy slowdown can actually be beneficial to us if we start looking at it from a value perspective. We can have a lot more work offshored and let the enhanced economy of scale take care of the cost issues.

Let me not be misinterpreted. I am not suggesting that we don't need austerity measures. We do need to cut down all the flab and needless expenses but let it not be the end in itself.

Hope "good sense" will prevail.

Regards

Sudhir