Archive for June, 2011

Mergers and Acquisitions

Mergers and Acquisitions have become the order of the day and seems to be the mantra for the growth of industries and businesses. M&As are today an integral part of the business strategy of the times. Such well thought out M& As go a long way in fueling the growth of the business verticals and help face the challenge of growing competition. M&A is an approved, legitimate route which helps develop the business activities into global levels and change the orientation of the company towards sustained growth. The trick here is to really be on the prowl and assess the targeted prey from all angles. M&A should add organs and growth and should not in any way limit the growth potential. Backward integration and forward integration of products Selection of possible acquisitions, assessing compliance regulations, conducting due diligence, financial negotiations etc. As the deal progresses, the focus shifts to the actual people involved and the processes. Clear-cut strategies, irrefutable rationale behind the acquisitions and scrupulous adherence to the processes and procedures related to the M&A.

There are many critical issues involved in M&As. The imperative need is to define the objectives for the M&As. Acquisitions may be in the nature of assets/business take over, acquiring controlling stake or strategic alliance. Not all acquisitions lead eventually to mergers.There will be and there can be no physical transfer of assets to the acquirer. Merger generally indicates the amalgamation of two companies or other entities which involves the extinction of equity capital of one of the companies. Mergers may be of a company and its’ subsidiary or two or more companies with or without cross share holdings. The merger decision will be based on the passing of necessary resolutions in boards/general body meetings of companies and also the sanction of the court orders.

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Offshore Software Development

Developed countries like USA, UK, Germany etc, had been monopolizing IT initiatives. IT development in these nations kept taking quantum jumps every now and then, culminating in the present excellent position of use of IT tools and softwares in every sphere of activity, be it business, ecommerce, international trades,knowledge dissemination and education. But this did not last long. Big corporates in these nations were already looking for cheaper ways of developing IT applications. Prohibitive cost of labour, non-availability of skilled labour and huge funds outlay for developing more IT infrastructure, acted as deterrents for these companies. Once they stopped looking inside their own countries for cheaper skilled labour and high-quality infrastructure and started looking to third-world countries like India, China and so on, the search ended. The offshore software development boom had begun.Outsourcing became the rage of the times and outsourcing still continues to be the chief attraction for big application developers of the developed countries.

Offshore outsourcing of application development and other IT projects offer these overseas companies significant cost savings by providing access to cheaper skilled IT labor in countries such as India.The otherside of the coin was that by outsourcing application and software development to third world countires, the developed countries were laying themselves open for the risk of rising unemployment and disillusionment amongst the skilled workers of their own countries. However when new innovative approaches take root, they seldom take into consideration any sentiments or hurt emotions. The tide of offshore outsourcing swept away these weak objections and surged on as companies in USA, UK , Germany and France seized the opportunity to save 30 to 40% costs in application development. These multi-national companies and in some cases the governments themselves ventured forth to outsource their application development and other skilled-labour-intensive assignments to countries like India.

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Growth of Translation Services Due To Globalization

Professional translation services prove to be indispensable when an organization decides to take its product or service outside its home turf. Such brand building exercises outside the home territory require strong support from translation services as companies encounter linguistic, cultural, economic, and legal obstacles in pursuit of their objectives in foreign markets. The advances in communication technology have helped organizations to extend their reach beyond their home markets. Distances have dissolved and differences in time zones have ceased to be a hindrance. In fact, they are more of an advantage as clients get their work done faster as compared to the vendors in the home countries.

However, one obstacle remains and that is the inability to correspond with clients who have limited or no proficiency in the English language. Earlier companies used to focus on those markets only where the native language was similar to the mother tongue. However, intense competition has forced companies to focus on these markets, as they are far too lucrative to be ignored.

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