Category — Human Resources

India Today magazine recently ranked the ten most powerful people of Indian origin living overseas. Eight of them are residents of the United States from the CEO of Pepsico to the heir-apparent of Warren Buffett’s Berkshire Hathaway. Also on the list are two Nobel-prize winning economists from Harvard and Columbia, a hotelier, CNN’s television doctor, and journalist Fareed Zakaria. Incidentally two of the eight (Jain and Rajan) are graduates of the Indian Institutes of Technology, of whose alumni association, I am currently President.

AJIT JAIN

60, Business Executive (2)

Because he is tipped to inherit the legacy of the world’s third richest person and legendary reinsurance giant, Warren Buffett, who says he has “added billions of dollars to the value of Berkshire”. Because Buffett, named one of the most influential global thinkers in Foreign Policy’s 2010 report, believes that even kryptonite bounces of the “irreplaceable” Jain and says he gets smarter by merely speaking with him every day.

Because he takes risks that others avoid-he insured the Sears Tower in Chicago, America’s tallest building, after 9/11. Because he has just spent $14.65 million on an amazing new home at One Beacon Court in midtown Manhattan.

Power quote “Jain has created an insurance business with a float of $30 billion and significant underwriting profits, a feat that no CEO of any other insurer has come close to matching,” says Buffet.

Did you know That Jain often does his travel reservations himself?

AMARTYA SEN

78, Economist and Philosopher (3)

Conscience Keeper

Because though he has Indian Prime Minister Manmohan Singh’s undivided loyalty, he doesn’t shy away from voicing his dissent over his policies. Because an embattled prime minister treasures a character certificate from him. Because at a time when India swears by the maximal mantra, he ridicules India’s fixation with China’s growth rate and calls for “justice” alongside growth.

Did you know That he is a self-proclaimed atheist?

INDRA KRISHNAMURTHY NOOYI
56, Entrepreneur (4)

Cereal Queen

Because she is one of America’s highest paid CEOs with a pay package of $13.97 million. Because she is one of the names tipped to succeed Tata Group’s chairman Ratan Tata. Because she invented a new language when she said, “We see the emerging opportunity to ‘snackify’ beverages and ‘drinkify’ snacks as the next frontier in food and beverage convenience.”

Because, in 2010, Fortune magazine listed her as one among the eight visionaries who are being seen to lead their industries in the years ahead.

Did you know That as a “poor Indian student”, she did summer jobs in saris. Once she went for an interview in a $50 business suit and orange snowboots like “the ultimate country bumpkin”?

FAREED ZAKARIA

47, Journalist (8)

The Newsmaker

Because he is the man America trusts to explain the post-9/11 Islamic world to them. Because despite having supported Barack Obama during his campaign for presidency, he has criticised the “fear-based” policies employed not only in combating terrorism, but also in framing immigration laws and pursuing trade, and has argued instead for an open and confident US.

Because his show Fareed Zakaria GPS on CNN is the stomping ground of world leaders and international statesmen.

Did you know At 28, he became the managing editor of Foreign Affairs?

SANT SINGH CHATWAL

59, Hotelier (7)

The American Friend

Because though he is “close friends”� with Bill and Hillary Clinton and several other Democrat leaders in America, even the all-powerful Barack Obama cannot ignore Sant Singh Chatwal’s massive influence as he helped raise over $10 million for his bid for presidency.

Because he is the owner of the $750-million Hampshire Hotel chain and Resorts Bombay Palace, with hotels or private destinations in most major capitals of the world.

Did you know That Chatwal, who currently owns and manages 14 hotels in four countries, savours simple food such as khichdi and jeera aloo?

SANJAY GUPTA

41, Neurosurgeon and TV Personality (11)

Sweet Medicine

Because the chief medical correspondent of CNN and former adviser to Hillary Clinton is the most charismatic neurosurgeon on television, chasing medical emergencies whether in Iraq or Japan.

Because men like Bill Gates use his show, Colorful Conversations, as a launch pad as in February 2011, when the founder of Microsoft announced on the show that he would donate $10 billion towards polio vaccinations for children around the world within a decade. Because his coverage of the Haiti earthquake with Anderson Cooper in 2010 was endorsed by television queen Oprah Winfrey, who referred to him as CNN’s hero.

Did you know That he was named one of the Sexiest Men of 2003 by People magazine?

JAGDISH BHAGWATI

77, Economist (15)

Fair Trade

Because he ignited a worldwide debate on growth vs equity, challenging Amartya Sen’s plea to end “our obsession with growth”.

Because he is a leading authority on trade and development and has served as a special policy adviser on globalistion to the United Nations.

Because he is a leading advocate of free trade and will present the case for multilateral free trade at the 2011 Adda B. Bozeman Lecture In International Affairs at the Sarah Lawrence College in New York.

Because together with Peter Sutherland he chaired the interim report on the Doha Round in 2011 sponsored by Germany, the UK, Indonesia and Turkey.

Because early last year, he was appointed to the advisory board of the Institute for Migrant Rights in Cianjur, Indonesia.

Did you know That after he advised Indira Gandhi to devalue the currency, he left India in 1966 for New York because he wanted to marry fellow economist Padma Desai?

RAGHURAM RAJAN

48, Economist (16)

The Forecaster

Because the former International Monetary Fund economist was named among the world’s seven most powerful analysts by Nouriel Roubini in a compilation for Forbes.

Because he was one of the first economists to recognize the flaws on Wall Street which led to the US and global financial crisis. Because his book, Fault Lines, won the 2010 Financial Times and Goldman Sachs Business Book of the Year Award and is considered a must-read for economic observers.

Because he heads a poll by The Economist of thinkers with the most important ideas for a post-crisis world.

Did you know He once famously remarked that “privatization by stealth has created many billionaires in India”?

Hundreds of millions of people in India will be glued to their televisions on Sunday night. But many won’t be watching the Oscars, even though musician A.R. Rahman (of Slumdog Millionaire fame) is a nominee for his score for 127 Hours. There are two competing activities that have Indians captivated.

AR Rahman at Asian Awards

February 27^th in Hollywood is already the 28^th in Asia and India’s Finance Minister Pranab Mukherjee will release the Annual Budget for the Union Government, which becomes effect on April 1. With direct and indirect taxation playing such a major role in India’s economy, consumers’ well-being and business fortunes are influenced greatly by the changes in tax rates and allocations of expenditure. The final budget will be posted online at the same time as Mukherjee gives his budget speech before India’s Parliament.  Indians watch the budget news with much greater intensity than Americans watch the annual State of the Union address from the President and even the preparations for the budget speech are national news.

India's Finance Minister Pranab Mukherjee

The second draw on television is India’s all consuming passion, the sport of cricket. The World Cup competition just started. In the city of Nagpur,in Central India, Zimbabwe will play Canada at 9:30 am Indian Standard Time, which is 8 PM on Sunday night in California. A few hours later the West Indies will square off against Ireland at New Delh’s Feroz Shah Kotla grounds. Despite the fact that these games are played during a working weekday, many Indians will receive regular SMS (text) updates on their cellphones; radios and TVs everywhere will be tuned to the right channels. Cricket will be the major topic of conversation until the final game is played on April 2 at Wankhede Stadium in Mumbai.

And who did you say won the Best Picture Award?

Takeaway: While Hollywood appears to unite the world and is certainly watched in India, there are many other forces at play in the Indian executive’s or consumer’s mind. Being aware of these forces makes it easier for you to succeed in business in India.

As a young graduate student in the United States years ago, I was  most puzzled by the American expression, “There is no such thing as a free lunch.”.   In India there were many free lunches, literally. The  daily “langars” at Sikh Gurudwaras are commonly known  across north India.  There’s nothing material expected in return, when a middle-class India donates meals, food  or grain to a local charity, not even a tax deduction.  My own father quietly funded several indigent students without telling anyone but my mom about it.  Just across the Misssissippi River from my university was the ISKCON (Hare Krishna) temple where free lunches were offered to anyone who walked in.

Charity in India has a long traditon and it goes beyond free meals.  Across the country  in which I grew up, “dharamsalas” offered virtually free (or low cost) accomodations for travellers, pilgrims or otherwise.  The only thing close to it in the USA are “youth hostels”.  Temples and bridges to reach temples were and are funded by wealthy families.

Most recently Azim Premji, the Chairman of Wipro Limited, a large outsourcer, pledged $2 billion to educate Indians.  And the Akshay Patra foundation keeps 1.2 million poor children is school by feeding them lunches; it is the largest such NGO in the world and is funded partly by Indian and Indian American billionaires. The American India Foundation and Pratham are other charities that do great work in India based on donations.

So I am puzzled that Bill Gates and Warren Buffett are headed to India to encourage wealthy Indians to donate to charity.   In a letter this year, Gates highlighted the need for donations, especially to plug a $720 million gap in a global program to wipe out polio. Before the Global Polio Eradication Initiative began in 1988, the disease paralyzed at least 350,000 children in more than 125 countries annually. This is a good cause for sure. But I am not sure that Gates needs to travel to India to promote fundraising for it.

The HBR blog, recently displayed 41 travel tips from Scott Anthony who logged 300,000 miles in travel to and within Asia last year.  I have listed a few of my choice tips from that list. Some of have my editorial comments appended in italics at the end.

# If you have the choice between an Asian or Middle Eastern airline and a U.S. or European one, always take the Asian or Middle Eastern one —even if you have to pay more for it.  Yep, lately I have flown Emirates Air (new planes, reasonable service, no late flights, good food, too  many choices of movies). And you can’t go wrong with Singapore, Thai, Cathay etc (see next point).

# Do whatever you can to get status on Singapore Airlines as quickly as possible. If there is a company that has higher service standards than Singapore Airlines, I’d like to see it.

# If someone says, “Just a minute” in India, that can mean anything from a minute to a lifetime.

# The least friendly country to enter is the United States. Actually I find that leaving Heathrow in London is almost as unfriendly.

# Don’t even consider driving your own car in India.

# Avoid eating dinner in your hotel room — even if you don’t speak the language, find a restaurant that has pictures on the menu. You get a better window into local culture.

# The US casts a long shadow, and people will ask your opinion on healthcare reform, the approval ratings of the President, LeBron James, and Apple’s latest moves. Your only hope is to read The Economist or a similar publication.

# I’ve been told really cheap bottled water in India is probably worse than tap water, because chemicals from the plastic eek into the water. S cott, if you buy cheap water in India, you are likely to get some serious bacteria, not just plastic and chemicals.  And even “expensivee” branded water bought from a less than reliable place can be “re-cycled”. Remember the quick scene in Slumdog Millionaire where Jamal and his brother are working in what looks like a restaurant: actually what they are doing is filling tap water in branded bottles and re-sealing them. This is not imaginary, it happens.

India’s role in global R&D has increased steadily in the last decade. My colleauges and I have directly participated in educating and encouraging North American and European corporation to include India and China as part of their global R&D ecosystem, through the Amritt Global Innovation Practice. Our clients are working with universities, national labs, private product companies, small inventors, and with many of R&D specialists who offer global engineering services using technical labor from Asia. Virtually all of our work is confidential so we are unable to share many examples of our clients success on this blog.

Yahoo! Inc however is not our client; The India Expert can report that its India R&D center’s contribution to intellectual property (IP) filed by Yahoo globally has increased to almost one-third the past two years, from 10-12% previously. While the company setup its Bangalore facility in 2000, Shouvick Mukherjee, vice-president of Yahoo India R&D, says innovation and product development from India have now started adding to the company’s overall revenues. “The major differentiator  is the responsibility of handling end-to-end products that we have compared to any other R&D center in India,” he claimed.

For example, Yahoos run an ad exchange a for which a product called Predict was developed in Bangalore. This product forecasts which online advertisement will get what level of click. This fundamentally improved the return on investment for advertisers, according to Mukherjee.  Another example is an internal platform product codenamed  Helion, which made it possible to launch multiple websites in parallel.

Yahoo has used a captive center model, primarily because most of its users are located outside the USA “There are companies that are outsourcing work and Yahoo is not in those section of companies. More than 50% of our user base is outside the US. And hence, it is very important for Yahoo to be global in its R&D” says Mukherjee.

In the United States, Yahoo has been under revenue and stock market pressure and reduced its workforce by 4% in an across the board cut in December , after prolonged rumors of a 10-20% cut focused largely on Blake Irving’s product development organization.

Only a few global companies have achieved a third of of R&D coming out of India and many companies don’t need to aspire to that goal. But it is valuable for all of us who struggle with running a global engineering organization to note that some have crossed this threshold.And its important to remember that the Yahoo approach of a captive center driven by market need is only one of many ways to succeed in India.