one of my presentation that i enjoyed making, have many memories with this ppt....specially with a friend of mine...

1. By Akash Tyagi
Challenges Faced By Organizations
In Today’s Slowdown Of Economy

2. SLOW DOWN
oA slowdown (usually called a 'go-slow' in British English) is an
industrial action in which employees perform their duties but seek to
reduce productivity or efficiency in their performance of these
duties.
oAn economic downturn is a phase of the business cycle in which the
economy as a whole is in decline .This phase basically marks the end
oToday’s slowdown is been caused by :
subprime mortgage crisis
Late-2000s financial crisis
credit crisis
Energy crisis

3. SLOW DOWN
oWhat was first a problem stemming for tax mortgage
lending in the U.S. has mushroomed into a global
financial, economic and employment crisis.
o Governments around the world have responded by
loosening monetary policy and then increasingly using
fiscal policy to revive or prevent a fall in consumption
and investment.
oThe full effects of these measures are not yet known.
It is hoped that they will help to ensure that the
slowdown in demand is limited and that consumers will
increase their spending, financial institutions will
resume their lending and businesses will begin
investing and hiring again.

4. Challenges and Impact Of Slowdown
marketing
Human resource
outsourcing
Indian and
international
Finance

5. Challenges and Impact Of Slowdown
On Finance
oAsset-liability mismatch: many organizations
are facing the problem of asset liability
mismatch which is a serious challenge to them
oFraud: the other biggest challenge is of fraud
inside and with the organizations which is
been a common thing in the slow down
oCost cutting measures: cost cutting is among
the top challenges in any organization specially
in slowdown
oProfit evaluation :profit being the key factor
is also a challenge as of how to sustain profit
along with quality

6. Cost HIGH SAVINGS/
NEGATIVE
ENGAGEMENTE
Reducing salaries•
Layoffs
HIGH SAVINGS/
POSITIVE
ENGAGEMENT •
Voluntary 4-daywork
week•Voluntary time
off•
LOW SAVINGS/
NEGATIVE
ENGAGEMENT•
Reduce discretionary
spending LOW
LOW SAVINGS/
POSITIVE
ENGAGEMENT•
Enhanced benefits
requiring employee
contribution•
Encourage work from
home
Cost Reduction Evaluation Grid
High Savings
PositiveNegative
Low savings

7. Challenges and Impact Of Slowdown
On marketing
oNew marketing policy : with the slow down
organizations implemented new marketing policy
and strategies to attract consumer
oCustomer campaigns': in slow down
customer campaigns are of a high value
because of market conditions
oTough competition : as due to various new
marketing policies been used by all the all the
organizations there is a tough competition
for an organization as if how to endorse
their goods

8. Challenges And Impact Of Slowdown
On Human Resource
oNo High end Packages: Lehman Brothers which made an
offer of 18 lakhs to a Delhi university(DU)graduates in2007
backed out from the process after its bankruptcy
oChange In Recruitment Patterns :The likes ofTCS, wipro
and keane are either going slow on recruitment or are
hiring more number of trained hands.
oNew Hr Techniques: organizations are stressing upon
new and innovative and effective HR techniques for
recruitment and training process

9. Challenges and impact of slowdown on
outsourcing A of organizations
Key Decision
Factor
Imperatives in the new economic
realities
Scale & Scope
determination
Determine the scale and scope of
Work or expand the scope to maximise any
new value extraction opportunities
Structure of the
arrangement
Consider new locations that
may now offer an attractive proposition to
structure the delivery model
Service Provider
Evaluation
Focus on service providers ability to service
debt liabilities and fund required investments
as well as any potential impact of
commitments made to and or by other
clients within their portfolio

10. Challenges And Impact Of Slowdown
On Indian economy
oFirstly, exports, foreign investments
(direct and portfolio) and ODA flows suffer,
reflected in slower growth.
oSecondly, this means poverty-reduction
effects of growth also suffer
oThirdly, government revenue
is adversely affected, limiting the fiscal space
available to goverments

11. oFourthly Post crisis, the rupee has
depreciated vis-à-vis the US dollar
oAgriculture is somewhat different and the
problems concerning agriculture have
nothing to do with the global slowdown,
although global prices and trade policy do
have indirect impacts. Essentially,These
problems with agriculture underline a failure
to introduce assorted reforms in the rural
sector
oJob Losses:Temporary or Permanent?

12. The seven –steps strategy to enhance
performance during economic slowdown
STEP 1: ELIMINATETHE FINANCIALLY UNSOUND HUMAN
CAPITAL PRACTICES
(i) Review all employee related expenses and assess those that
do not make a significant difference to the employees.
(ii) Survey employees to determine the benefits that have
greatest value.
STEP 2: RETENTION –TALENT RETENTION
Strategies for retaining top talent
(i) identify top performers and high-potential employees
(ii) Track turnover rates of these key employess separately
from overall turnover figures.

13. STEP-3: Compensation –strategic for fixed
and variable components
STEPS 4: Motivation – little thing mean
a lot
STEPS 5:Training And Development
Initiatives
STEPS 6: Right recruitment–as per
budgetary provisions
STEPS 7: exit redundant work force

14. Case study
Impact of the slow down on
IT sector in the Indian economy
•The impact is likely to be higher for discretionary
outsourcing expenditures rather than for critical,
ongoing Application Development and Maintenance
(ADM) services.
oThe impact has been more severe in the case of the
Banking, Financial Services and Insurance (BFSI),
which accounts for around 40% of the industry’s
export
revenues, and in retail and certain manufacturing
sectors

15. Company
name
BFSI share
(%)
Jan-Mar
2011
Apr-Jun
2011
Key BFSI
client
Cognizant 46 292.4 314.2 American
Express citi
group,
JP Morgan
Infosys 34 387.1 398.5 Washington
Mutuals ,UBS
TCS 42 664.4 648.2 Fortis, JP
Morgan, Merrill
Lynch
wipro 25 256.8 271.1 Credit Suisse,
Lehman
Brothers, UBS
BFSI Share In Top Indian IT
Companies

16. Future outlook
•Uncertainties high: elongated
sales cycles render high uncertainties for IT
Companies
•Price cuts to hit margins: companies are expected
to cut pricing in favor of
Volumes
•Revenue visibility fogged out:
the prevailing tough environment, revenue visibility
appears fogged
•Uncertainty weighs on valuations

17. Conclusion
•Despite the foreboding financial crisis, the opportunities
are massive. Making the growth vs. profitability trade-off
early on during the slowdown is just one of them.
Profitability levers are still available if growth is sacrificed
where required, and managed well.
•To conclude, we are tempted to use a popular aphorism;
the Chinese character for “Crisis” represents two
symbols “Danger” and “Opportunity“.The choice is
ours.