The economic downturn is wreaking havoc on nearly every corner of the world, but every player on the global stage is fighting back with its own array of response tactics.  

India Reshuffles

Trend: India cuts “dead weight” and invests in project management structure and accountability.

In India, it’s all about resource management, says Lalit Dhingra, Atlanta, Georgia, USA-based president of NIIT Technologies Inc., a global IT solutions firm headquartered in New Delhi, India. A year ago, project owners were filling teams with warm bodies, and few really cared if you went over budget. “But that’s all changed,” he says.

Project leaders are now being forced to cut unnecessary team members and deliver results with little room for error.  “Project managers in India today are under tremendous pressure to deliver ROI with existing resources, and they are struggling to meet their goals.”  The bright spot, says Mr. Dhingra, is that the economic strain has led to a much greater focus on project management methodology.

“Organizations in India are spending more money training project managers, and they are setting up [project management offices] to establish guidelines and structure for project management,” he says.This includes teaching senior project managers how to effectively scope projects and establish project parameters.  “It’s an important time for companies to recognize the value of project management,” he says. “More training and better talent will help them manage the crisis.”

North America Goes Public

Trend: In North America, the federal government bailout is fueling big projects aimed at building the economy and keeping people employed.

Budgets and resources are shrinking, and even well-funded infrastructure projects face road blocks. “We are not seeing big projects stop, but there are a lot of delays and shifts,” says Ben Soule, senior engineer for International Bridge Technologies, San Diego, California, USA.

In the field, he has seen major infrastructure projects shift from public-private partnerships to public funding. He points to a highway-widening project in British Columbia as a prime example. “Some of these projects—in Canada especially—have been impacted by the economic turmoil, and the government is taking over financing to keep them going,” Mr. Soule says. “Governments don’t want to see these projects stopped. If they provide financing, they can move forward faster.” In the United States, the federal government’s US$800 billion stimulus package promises to fund “shovel ready” projects across the nation. “Everyone right now is just holding their breath,” Mr. Soule says, “waiting to see where that stimulus money will go.”

Africa Holds Its Own

Trend: Business reforms keep African economies moving forward.

Fueled by investments from the global business community and massive reforms aimed at fostering that influx, many African countries enjoyed rapid economic development over the past few years. From 2007 through the first half of 2008, the continent posted its best performance, says Karanta Kalley, Africa economy analyst for Global Insights, Philadelphia, Pennsylvania, USA.
Although the economic crisis has caused slowdowns, and inflation is driving up the cost of materials, Africa is still in far better condition than it was 10 years ago.

Greater political stability and the push for economic reforms has inspired a wave of foreign investment in infrastructure and business development projects that Mr. Kalley expects will continue during and after the crisis.

“Between 2005 and 2008, 70 percent of African countries implemented business reforms around taxes and ownership issues that are driving economic growth,” he says, noting that countries in west and south Africa have made the greatest strides.  This focus on developing a business-friendly environment is minimizing the withdrawal of foreign investors in the wake of the crisis, he says.  “A lot of projects have stopped, but companies aren’t pulling out,” he explains. “They are just waiting for better days.”

Mr. Kalley predicts once the global economy begins to recover, demand for raw commodities, particularly from China, will spur renewed growth in African economies.

“You cannot ignore the impact of China’s involvement in Africa,” he says. Looking to answer demand for resources in their country, Chinese corporations have made large-scale investments in African mining and energy operations over the past five years.

Latin America

Trend:  CIOs demand bottom-line results.

Still seeing slow but steady growth, pockets of Latin America—most notably Brazil—are bucking the global downturn. A diversity of industries and governmental willingness to pour money into stimulus projects are keeping most of the countries in this region afloat.

The crisis has taken its toll, however, says Hector Alonso, managing director of the Latin American and Caribbean region of Global Crossing, an IP solutions provider in Buenos Aires, Argentina. “The priorities of CIOs are changing,” he adds. These days, projects must deliver cost-cutting and efficiency benefits or efficiency on critical business functions to win approval.  “Mission-critical application improvements will still move forward, despite the crisis,” Mr. Alonso says.

More companies are also turning to outsourcing for IT projects, particularly for back-office implementations. “In a crisis, outsourcing catalyzes efficiencies and cuts costs, and that’s what CIOs are looking for,” he explains.