Global recession : impact on multi-dimensional firm performance of Indian IT-ITES firms serving BFSI industry | |
| Author | Kailasam, Murali |
| Call Number | AIT Diss. no.DBA-SOM-13-01 |
| Subject(s) | Recessions Business planning Success in business |
| Note | A dissertation submitted in partial fulfilment of the requirements for the Degree of Doctor of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation;no.DBA-SOM-13-01 |
| Abstract | Between December 2007 and November 2009, the business cycle experienced contraction, leading to global recession. There were conflicting signals in the Indian Information Technology-Information Technology-enabled Service (IT-ITES) industry during this period. A few firms posted healthy profits and reported double digit year-on-year revenue growth. Investments continued in intellectual property (IP) development, to improve service offerings and compensation and in recruitment. At the same time, some Indian IT-ITES firms posted a loss, and, consequently, retrenched to optimize spend. These contradictory signals raised questions of what had really happened in Indian IT-ITES firms. This led to this study, the purpose of which is to understand the effect of global recession on the performance of Indian IT-ITES firms. In this study, organizational performance was considered across multiple dimensions: financial, human resources, customer service/satisfaction and quality. Seven publicly-traded Indian IT-ITES firms, serving the banking, financial services and insurance (BFSI) industry were researched. This qualitative study employed explanatory case study research methodology. It was a longitudinal study over four financial years (FY08- FY11), thus encompassing the economic crisis and a return-to-growth period. This study identified turnaround strategies employed and accurately diagnosed their effectiveness. Finally, it compared and contrasted the cases studied. The findings revealed that high performance companies were able to control costs to match their revenues. Their revenues continued to grow in spite of the decline in demand. They innovated and increased sales, diversified and performed mergers and acquisitions (M&A). They continued to invest in order to retain uniqueness and specialized abilities. They managed strong customer relationships, and the ability of their management to handle recession was far superior. Retrenchment which would have affected quality, HR activities and customer service/satisfaction was avoided, and indeed, most continued to invest in these areas. These findings offer suggestions for companies to better combat recession. This research had limitations, since it covered only a single recession cycle, industry and country. It is suggested that future quantitative studies should consider more or alternative industries, regions and company sizes and span multiple economic cycles. |
| Year | 2013 |
| Corresponding Series Added Entry | Asian Institute of Technology.Dissertation;no.DBA-SOM-13-01 |
| Type | Dissertation |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Doctor of Philosophy in Business Administration (Publication code = DBA-SM, SM) |
| Chairperson(s) | Johri, Lalit;Winai Wongsurawat (Co-Chairperson); |
| Examination Committee(s) | Pandey, Indra Mohan;Donyaprueth Krairit;Huynh Trung Luong; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2013 |