With Ongoing evolution of new technology and standardisation
of the business practices the business across the globe are moving across
various destinations.Moving across different nationalities helps business to
arbitrage on the cost opportunities as well as get skilled pool of manpower.Hence now the game is changing from long term unsatisfied
business relations to more dynamic and satisfied business relations.
Where the client asks for constant improvement in the
present process and keeps on analyzing different opportunities and constantly
improving the present process.The game is going to be more exciting in coming years due to
adoption of standardized accounting noems like IFRS and XBRL.There is a constant urge for standardization of business
practices as well as reporting for more transparency and comparability.
Almost 90 countries have signed for International Financial Reporting Standards (IFRS) and still many
countries have it on their cards.Many developing countries are joining the league and
following IFRS.XBRL is developing fast as business reporting language.It standardize the reporting of various entities to ensure that every entity
reports on one platform.
US securities Exchange and U.K's HM Revenue & Customs
already require the reporting on XBRL format. India has also adopted XBRL for
financial reporting to ministry of corporate Affairs.Standardization of reporting helps local talent to come to
the global markets and work at an international level.
This would inturn help in cross country funding of capital
with increased transparency.
Transition period might be a challenge for the business
entities as well as regulators. Considerable amount of resources needs to be
invested in people in order to transform from old systems to new ones. However the benefits of the change are much more relevant in
long term and can prove to be worthy of investments.However free movement of information is a prerequisite for
achieving this goals in a short term.
Various laws like PIPEDA legistation of Canda and EU data
protection Act are preventing free movement of information across the globe.But that cannot be sustained for a long time and these
challenges are to be overcomed in long term.The urge of business enterpreneurs to be more cost efficient
would ultimately push towards free movement of information across globe.
As noted economist C.K Prahalad rightly said: now it is a
vague question "will there be globalisation?" the question to this should be " How
arbitrage on the benefits of Globalisation?"A decade would make world a global village with equal
opportunies for every nation and every individual. The competition would be
fierce in the near future and
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