The challenge will be to switch from a functional system of management to a process system. This may sound cliched, but it is true. Sid Khanna, Andersen Consulting Basic processes such as sensible criteria to measure performance or target allocation, aren't in place in most Indian companies. For better companies, putting a good management team in place will be a big challenge. Companies which are planning to set up shop in India have always operated in a cut-throat environment.
Indian companies have to build capabilities to meet such competition.
I know it could sound a bit crude but that' s a fact, is going to be the biggest challenge for Indian companies. Increasing shareholder value is going to be the key to ward off a takeover threat. Over time, power centres have emerged in most firms not only at the top, but also at the middle level. Managers will have to spread out authority. ICI The business paradigm will change to one of working with alliances and partners who may have been competitors in the past.