Near about 8to 10% apreciation of rupee against doller is big concern for country like india because we not only import basic comodities but also raw materials such as an oil which sometimes crosses 70doller per barell and that price does not adjustable in indian domestic market and most especially the employment linked with export is closed .With that indian domestic manufacturers demotivated.
until unless we are selling our body (body shopping) instead of selling our brain with innovative product we will not grow. if we carried out same ethic in raising indian economy it will not sustain. for ur info IT and BPO is not just indian economy. ask any It company do they own any copy right of the software. its all in the hand of american company. those guys can make money anytime with same vesrions of software and minimum amout of employees. what prof saying is come out with innovative solutions so u can rupee 1 to a $. may be initially all software companies will ask u to work on sat. So till selling body (body shopping) and Prostitution there is no difference. u will be sold till ur young.
RE:body shopping
by Alok Chaurasia on Oct 04, 2007 12:17 AM Permalink
my dear ..mind one thing USD getting lower against most of Currency .. not only agains rs also EURO ..Bhatt (thailand .. rupia Malysia ..so plzzz revise ur statement ....
I don't know how a business school Dean can say things like this, as it is logically incorrect. For example, the japanese carnakers did change the strategy and infact initially they did incur some loss in profit during appreciation of yen. The point is, the two sectors are poles apart - IT and Automobiles. for example, a consumer will buy a car not based on cost but based on quality, reliability, engineering, gas(petrol) economy etc. on the other hand, the entire IT industry works just based on difference in currency, the moment the Re becomes stronger, the Call center profits will go down, no longer the IT BPO will get outsourced jobs. It will definitely have a domino effect, the salaries of the IT, Call center workers will go down, naturally calling for a low currency floatation in the market accounting for a sudden stop in the growth of the economy...again causing a depreciation of the rupee. However, then the scenario will be different, in the meantime, the outsourcing jobs would probably move to other countries such as malaysia, thailand, vietnam, etc. And because of that the chances that after the depreciation of rupee India will get its jobs back are miniscule. The exporters do have to worry about the strong rupee, cause they can not ask the importers to pay more for the products which can otherwise be bought from neighboring countries such as bangladesh, pakistan, sri lanka, etc.
So in short the STRONG RUPEE will have DEVASTATING EFFECT on INDIAN ECONOMY!!
RE:The Strong rupee is a concern
by prasanna prasanna on Oct 03, 2007 10:38 PM Permalink
until unless we are selling our body (body shopping) instead of selling our brain with innovative product we will not grow. if we carried out same ethic in raising indian economy it will not sustain. for ur info IT and BPO is not just indian economy. ask any It company do they own any copy right of the software. its all in the hand of american company. those guys can make money anytime with same vesrions of software and minimum amout of employees. what prof saying is come out with innovative solutions so u can rupee 1 to a $. may be initially all software companies will ask u to work on sat. So till selling body (body shopping) and Prostitution there is no difference. u will be sold till ur young.
RE:The Strong rupee is a concern
by Pradipta Bhattacharya on Oct 03, 2007 11:09 PM Permalink
Agreed ... Strong Rupee is defnitely needed for a long term sustainable growth and whether IT/ITES companies benefit or suffer for that is immeterial. But, the fact is the current Rupee strength is dependent to a large extent on the Dollar Earnings of the IT/ITES sector.
Again agreed that these are not all of Indian Economy .. there is a much larger segment of the economy where we do not sell bodies / nor earn by postitution.
But its not clear what is the option that you are proposing to replace the IT/ITES earnings? If you do not have any .. then just shut-up. BTW : I work in the IT sector - if that means anything to your argument.
RE:The Strong rupee is a concern
by N.P.Sharma on Oct 04, 2007 12:06 AM Permalink
Dear Friend
1. We get salaries to meet expenditure . 2. Salary of people serving in Govt. like MBBS doctors are good enough to meet dead means. 3. If rupee is strong import of crude oil will cost less thus lesser inflation . 4. Thus there will be a need for lesser salary . 5. Do we need to pay BPO industry chaps as high as an Doctor . 6. Every friday 80% of crowd drinks belonges to BPO . Is it ok ...If not try visit to costly bars where a beer will cost 175 to 300/- rupee which cost 40 /- rupee on shop. A raw chicken which is sold for 60/- form poultry farm is bein sold at 350-450 in these restraunts after cooking. Does it make sense.
There is a need to pay salaries comparative , Price control of essential commodities thus reducing inflation , not by weakening currency.
RE:The Strong rupee is a concern
by AJITH BHATT on Oct 04, 2007 08:48 PM Permalink
You are right Sharmaji,Bangalore was much less costlier before this IT Guys and Call-Centre Guys came here,most these guys does not know the value of the money, and most of them does not have any saving habit but only spending habits.
These silly people expect that they will getting fantastic salary hikes during their life time, due to their spending habits they are making other middle-class and poor peoples life miserable in Bangalore.
RE:The Strong rupee is a concern
by Rebel on Oct 03, 2007 10:36 PM Permalink
Thats your view point ....might be because you are working in an overpaid IT Industry ......
Why not just devalue the currency as done in Zimbabwe ????? say for 1$ = Rs 1000 .
That might show an excellent Top line as well as Bottom line growth for the IT /ITES sector ....
I have always been wondering as to why Indian exporters quote in US Dollars instead of in home currency INR. If they quote in INR then a strong rupee should not affect them. Most of the exporters across the world quote in their home currency and not in USD.
RE:Rising Rupee
by Sugato Dutt on Oct 03, 2007 10:07 PM Permalink
Dear Prakash, Quoting in one's home currency is only viable when your home currency is freely convertible. An overseas importer will look for a fixed cost for the products he imports, in we quote in Rupees he has to work out the exchange rate prevailing at the time he makes his remmittance. Big importers do not like or want to go through so much trouble. They just want to instruct their bank to wire X amount of Dollars or Euro and not worry anymore about it. If we want to keep customers, we have to quote in convertible currency. Things in real life are much different than the ideal situation.
RE:Rising Rupee
by Ajit Birdi on Oct 03, 2007 10:41 PM Permalink
There is no need to worry. the bank converts the dollar on the day of transaction and still pay the company in rupees. I do that regulerly and encounter no problems.
It is surprising to know that exporters are worried about this!even our F/minister looked worried.Why ? In fact rupee srengthening is a good sign.Exporters should increase the price of their product.(Or they should make a contract with their overseas customer based on chane of Re/doller parity.One need not chane the price every day.(The effect of previous month should be adjusted in the following month based on change in parity).Financial experts should study on this & find the solution.Why expect the Re to be weaker?
IT companies need not to worry about the rise in Rupee. They have to rationalize their pay structure then everything will be fine. As of now a person who can clean the computers daily in an IT firm is earning more than a Govt. Clerk. A highschool pass who can write a program of few lines is earning more than an entry level govt. officer in 8000 scale. A person who know little more about computers with some 5-10 years experience earns more than the secretary of Govt. of India. Therefore, there is no logic in the cry of IT companies and seeking relief from the govt. They have to first put their pay structure in order before asking any concessions from the govt. The newly rich and overpaid IT professionals are also creating some social problems. So increase in Rupee value is in the interest of society also.
RE:Solution to Problems of IT Companies
by N.P.Sharma on Oct 04, 2007 12:12 AM Permalink
Its true that BPO industry is contributing more to deform the values and beliefs of India as a country . 80% of the youth can been in pairs on friday drinking beers @ 375-450 /- a bottle from where the money comes ... its IT /BPO.
RE:Solution to Problems of IT Companies
by AJITH BHATT on Oct 04, 2007 08:52 PM Permalink
You are right Sharmaji,Bangalore was much less costlier before this IT Guys and Call-Centre Guys came here,most of these guys does not know the value of the money, and most of them does not have any saving habit but only spending habits.
These silly people expect that they will getting fantastic salary hikes during their life time, due to their spending habits they are making other middle-class and poor peoples life miserable in Bangalore.
RE:Solution to Problems of IT Companies
by maddy m on Oct 03, 2007 10:25 PM Permalink
I truely beliv in ur thoughts matey. India is looking at a new horizon of export of manufactured products.So,if these IT companies revive there salary,may be young engineers are not forced to take up only IT as career. Efry engineer can specialise in his own field.This would bring foreign money in a diferent way other than IT. India has a huge labour and blue colour poplation which is treated as cheap.Its time to change the perspective and make efrybdy equal.Then only indian economy can be called as super power. Only by means of IT,its never possible to make India a developed nation. Farmers should be brought into mainstream by providing modern communicetion and technologies. If we ignore farmers,then we can never be a super power coz more than 60% of working population depends on agriculture. To make INDIA super power Blue collar and farmer community has to be made economically strong.
RE:RE:RE:Solution to Problems of IT Companies
by jay krishnan on Oct 04, 2007 09:15 AM Permalink
well said friend. Only a low life honourless BPO punk or IT coolie will disagree with you here.
RE:RE:Solution to Problems of IT Companies
by AJITH BHATT on Oct 04, 2007 08:54 PM Permalink
You are right every profession, every business, every vocation is important not just IT and Call-Centre which are being over-hyped and over-projected by the media,just like our Cricketers
RE:Solution to Problems of IT Companies
by Kolhapuri on Oct 03, 2007 09:45 PM Permalink
Sanjeev must be from Kerala or Bengal and must be deeply involved in electing the communist morons in power to lick China
RE:Solution to Problems of IT Companies
by jay krishnan on Oct 04, 2007 09:10 AM Permalink
Kolhapuri must be from USA where he used to clean toilets there parttime while cooking up his resume to work as a IT prostitute. Seems like you have really taken a strong liking to your role there.
If you see technically India and Japan both are export oriented economy and that's why with the current fall in Dollar, Japan is controlling the Yen not to rise. India will be at a bigger lost with Rupee rising.
That seems to be the question on everyone%u2019s mind. Well, let%u2019s take a look at what the evidence tells us. And it%u2019s not reassuring. http://stockideas.org/content/view/872/70/
The primary issue with the IT companies is 65% of their clients are based out of the US. Literally the US market drives the indian IT firms. They are already taken various steps for mitigation and trying to expand globally. The European market provides a potential oppurtunities, As an expansion strategy to have a firm global presence, companies like TCS & Wipro are acquiring European, Australian & South American companies. With the decreasing dollar value, at least the rupee appreciation won't find a drastic change in the Basis Points with respect to the European economy.
RE:Expand global presence
by Praveen Kumar on Oct 03, 2007 08:57 PM Permalink
Explore european clients and explore alternative offshore base. No US, No India.
