Karma, the KPMG way

Global audit, tax and advisory major, KPMG, is upbeat about its business operations in India. That is hardly surprising since it has been growing at 40-50 per cent every year over the last three years. Timothy P. Flynn, Chairman, KPMG International, who was recently in Mumbai, told BT that the challenge was to maintain this kind of a growth rate.

India is a hugely important market to KPMG. “We have over 3,000 people working in India,” says Flynn. That number is expected to increase to 5,000 by 2010. Globally, KPMG has some 1,23,000 professionals across 145 countries. “There is a tremendous opportunity for us in India. At this stage, India and China are running neck-and-neck in terms of their significance to us,” he adds. It was in 2005 that Flynn was appointed Chairman & Chief Executive of KPMG LLP.

Globally, KPMG recorded revenues of $16.88 billion (Rs 67,520 crore) in 2007. While Flynn declines to elaborate on revenues from the Indian operations, the Asia-Pacific region accounted for $2.55 billion (Rs 10,200 crore) and grew by over 20 per cent.

Referring to India’s potential, he said India was earlier viewed as an outsourcing base. “Today, the opportunities in sectors like pharmaceuticals and IT mean companies in these sectors have to be in India,” points out Flynn.

According to him, the biggest factor in India’s favour is a young population with an average age of 29. “This is a huge emerging population. The average age in the US is 44 and it is 37 in China.” The slowdown in the US economy and the subprime crisis are being viewed as an opportunity by KPMG. “Cycles are an opportunity.

It is important to look at market forces and re-look at business processes,” said Flynn. He added that a business like advisory will help clients in getting out of this situation.

— Krishna Gopalan