Are Indian compnies running a risk by not giving attention to cost cutting?

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Ashley Kannan | Middle School Teacher | (Level 3) Distinguished Educator

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The most succinct answer here would have to be an emphatic "yes."  In the current economic climate, where there are so many challenges being faced by businesses and so many fundamental threats to the viability of businesses, not paying attention to cost control measures for any organization cannot be seen as a good thing.  The companies that fail to give attention to cost- cutting measures do not make themselves sustainable over the long term.  Measures that seek to control cost can be implemented to streamline a company, making it more profitable and ensuring its long term success.  At the same time, cost control measures can help a company endure the challenges where there is a lack of economic growth.  I think that this becomes even more essential in the setting for Indian businesses.  On one hand, Indian businesses are competing in a setting where businesses have not be so dominant for so long.  The liberalization of the Indian economy is not even two decades old.  Therefore, there is not much in way of stable ground upon which to plant one's business.  In this condition, the need to control costs and engage in targeted cost- cutting measures is essential for economic survival for many Indian businesses.

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