Russia’s invasion of Ukraine is pushing companies to rethink globalization and could add to forces moving against decades of international economic cooperation.
suspending operations in Russia, are part of the response from the corporate world after the unprecedented sanctions imposed on Russia kneecapped the eleventh-largest global economy in a matter of days.
While companies won't state their decisions in these terms, even large ones may choose to stay away because the unprecedented sanctions are not worth attempting to fully understand given the risks of ending up on the wrong side of the U.S. government. "This sends a powerful signal to other regimes that may run afoul of the West, which controls the global financial infrastructure," says Markus."The signal is: create alternative infrastructure asap. We will see a fragmentation of payment networks, a proliferation of state-issued digital currencies, 'sovereign internet' , etc."
"The answer should not be a reactive onshoring of capabilities, especially in a world where the current crisis will increase existing shortages of digital skills," David Groombridge, Gartner Research VP told CNBC via email."Instead, executives need to navigate a complex balance of competitive advantage, geographic concentration risks, skills availability, legal and regulatory issues, and country risk factors to relocate their IT services.