A.T. Kearney, Inc.

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One major reason suppliers are wary of adding capacity is because they bear the majority of the risks—even more so during a recession—while the rewards are skewed toward manufacturers. In the absence of appropriate risk-sharing mechanisms, suppliers have little incentive to add capacity ahead of demand, especially if adding capacity requires large capital expenditures. It is imperative for manufacturers—especially those in cyclical industries—to provide suppliers with incentives to add capacity.

India's auto industry is the world's sixth-largest producer of automobiles in terms of volume and value. It has grown 14.4 percent over the past decade, according to the Society of Indian Automobile Manufacturers (SIAM). With more than 35 automakers, the industry contributes 7 percent to India's GDP and is responsible for 7 to 8 percent of India's total employed population.

Every year since 1992, the GBPC has convened 50 to 60 business leaders from Global 1000 companies, public-sector officials, as well as eminent thought leaders representing diverse disciplines and areas of expertise. The retreats are held in equally diverse locations. One variable is held constant, however: Each meeting is dedicated to elevating the level of understanding on the key issues of the day.

The IT Innovation Study focuses on corporate IT initiatives and expenditures dedicated to creating game-changing technology products, services, and value-chain solutions.

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