The excessive growth and mind boggling salaries in some sectors has lead to a inflationary trend. The rising rupee will pull the excessive salaries and keep the compensation at realistic levels. This will also reduce attrition and job hopping. May be people will then concentrate more on quality and service and not just the big show off and fuss.
Let people be paid what they deserve and people buy only what they really afford.
A shocking trend is being discovered of enginerring and science colleges not being able to fill their
alloted seats, as more and more people taking commerce and management. This trend will also stop as a result,
and more and more people will again take up science and technology.
Let it be a blessing in desguise.
I have seen the dot.com bust in 2001 in the silicon valley and these are the words of a dot.com bust techee surrvior.
Phaneesh is spot-on. Pls continue posting such insightful articles Rediff. Check out InstantDiomainSearch.com for the best rates on domains. Also checkout the cool internet gear.
Phaneesh Murthy was right when he said that the IT industry has an inherent capability to adjust itself to the changes taking place in the economic landscape. Because, most of the Indian IT companies have high exposure to dollar the impact will definitely be sizable. From the customer and billing rate perspective this may not be very dramatic because the customers also understand the dynamics in the exchange rate mechanisms. Growing purchasing power parity for India means India may either evolve into a super power that can generate strong IPs in all fields and generate huge money through investments and consumptions or India may slip into obscurity like a few Latin American countries such as Brazil that appeared like a country with a potential to challenge the dominance. Indian IT industry is certainly not very healthy from the perspective of talent and the wage rates. On one side we are getting good youngsters with a different cultural setting - more selective and outspoken to be managed by the leaders with old generation thought processes. In many areas of IT industry the aggression is missing because of the conservative approach of 60s and 70s still present. We should not try replicating the .com bubble again but are we thinking about something that is as significant as a .com to initially shake the market and bring in investments towards India?
While we wish that the IT sector in India become more competitive and grow, this Sector must not fall back on the Rupee's growing or falling strength in order to grow & be competitive. The IT Sector must look at areas of Cost Reduction like Staff Wages rationalisation, make a balance between Quantity & Quality on the IT Staff as numbers alone do not make up for the quality of the output delivered, in order to cut costs and remain competitive. It would not be a surprise to know that at least 10 - 15% of IT staff in many IT SW related Companies are Deadwood & while the Companies could come out to counter these claims, it is quite evident in today's environment that this figure would hold good.In fact, the IT Industry is to be squarely blamed for the high attrition rates in this Industry given the hip-hopping that happens between IT Organizations by the workforce, as a result of which there is an escalation in the manpower costs. While this point will be contested by many of the job hopping IT workforce, it would be relevant to observe the social impact that rising IT incomes have made to cities like Bangalore, Hyderabad, Chennai, Pune, Gurgaon, Kolkata in terms of increasing rentals and Land rates, higher cost of living etc.So let the IT industry focus on the areas where they can reduce costs while competing against the rising rupee. We being in a Global economy should give the rupee its due share without devaluing the value and find competitive ways of handling these issues.
RE:Rising Rupee - Why does the IT Industry croon?
by Chola The Greatest in the Universe on May 26, 2007 09:23 AM Permalink
In my opinion typical IT companies have 60%-70% as waste. Some 15-20% are the most inefficient but more senior in terms of ranking (also salary) just because they could not find another job and continued working for the same company.
Frequent job changes does not mean they are looking for more salary. Most of the times it was due to high-efficiency people dont want to sit idle in an organization not more than a month forcing them to look oppurtunities.
Typical Project based organizations could not engage its work-forces continuously all the time.
RE:Chinese are Hungry......
by Sumant on May 25, 2007 07:09 PM Permalink
Quality...hahahahah..umashankar..u thot we were selling bcoz of quality. have a coool bathee dudeee.
RE:Chinese are Hungry......
by michael kay on May 25, 2007 07:25 PM Permalink
Why are you guys so scared of Chinese??Be like Chinese and try to capture the Global market.Leave them alone and try to compete with the West whom you think is your friendly neighbour but had colonised you for centuries.Learn to identify the actual enemy.Grow up Umashankar.
Murthyji...problems r always part of every sector or business....solving them n earning profits is wt gets counted n not...worrying abt the yet 2 come issues....dnt worry abt others bread...try 2 save ur bread...
Hi! I feel yes the appreciation of rs will hit IT sector, but well if we take in to consideration the long term effect well i feel it wil be positive. Rs appreciation will lead to less outgo of Dollars in Rs term.I mean when the equation of $ & Rs is 1=50 you have to shell out more Rs to get crude oil when the same equation is 1=40 naturally you are paying less in Rs term. Now if you are saving on Rs then the immediate benifitiaries will be Refineries and then govt will be in a position to reduce the rate of petrol, diesel, kerosene etc. It will directly help in reducing the inflation. also the manufacturing units will save on their fuel bill. May be it will lead to reducing the prices of the goods in domestic market. And well then the govt will be in a position to help the IT sector by giving some benifits in the form of tax rebate, reduction in tax rate, extra help to setup in developing cites etc. These measures will definitely help the IT companies to reduce their fixed expenses and will give them some room to negotiate with their overseas clients. That will lead to increase in the margin of profit for IT companies. But as it can not be done overnight and will take some time It sector will have to be patient and will have to plan their strategy accordingly. Ultimately it is for all of us to see to it that our IT sector should Rule the world and India should be a super power by 2020!!!!! Jai Hind! Mera Bharat Mahan!!!!!
