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Not Exactly
by Vishnu Varma on Oct 03, 2007 07:20 PM  Permalink  | Hide replies

Though we have made significant progress in last decade, to compare current India to 80's Japan does not seem realistic. Japanese auto makers had significantly better product in terms of quality, fuel economy and electronics. They used that advantage to survive an unfriendly situation. Indian software companies are still primarily competing on cost advantage. While we are all hopeful that in the near future, India will be able to compete on other parameters, not giving them the exchange rate edge now will not help the current growth. I certainly would encourage our central bank to be watchful of the exchange rate with our key target markets and act in a proactive and responsible manner, instead of just telling Indian companies to innovate and expect BPO and IT firms to just do that.

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RE:Not Exactly
by ASHOK on Oct 03, 2007 07:37 PM  Permalink
Vishnu

Their is already a talk to open 2nd Silicon valley in US. Likely place is New Jersey or Chicago.

It will have investment from Indian Govt. and Indian Software companies.

Moving to USA and making investment is quite like what Japanese did in Car making.
They opened car plants in US.

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Stupid idea
by Rinku on Oct 03, 2007 07:00 PM  Permalink  | Hide replies

I am no economist, but practically seeing, the idea seems to be stupid. Here what u r implying is that to save one to two rupee appreciation effect, u double your cost by moving manufacturing or production to higher cost companies. Now where u will move. Other asian countries are witnessing the similar trend. Chinese Yuan appreciated 5%, Singaporian Peso 10% and so on. So u r left with countries such as Zimbabwe or South African nations whose cost is not appreciating. But what about when they decided to do so? Again shifting the production?? Well that is not solution. Moreover if u shift ur production to America, the production cost will be so higher that your profit margins will surely face the music because as of now your production cost is too low due to cheap labour in India.

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RE:RE:Stupid idea
by swamy on Oct 03, 2007 07:23 PM  Permalink
what that translates to is , send more people onsite and reduce the total workforce. He is a Wharton Professor, he knows what he is talking ok

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RE:Stupid idea
by Maryjorse Gandmar on Oct 04, 2007 04:06 AM  Permalink
Dei mara mandai, just because he is wharton we should believe whatever he said or what ? RBI can keep the rupee down indefinitely, that's the right thing to do for our IT company peoples. If you open office in Iselin and put Infy peopple onsite they will charge more that too in dollars because they will go to Iselin corner porn store and rent porn dvd who will pay for that, your father ?

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RE:Stupid idea
by Cool on Oct 03, 2007 07:25 PM  Permalink
Did u say Zimbabwe cost not appreciating? Do u have any idea what the Zimbabwe Dollar is to US$? In the past few mths it had devalued by more than 1000%.

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Is India growing ? I am happy if it is. But
by prapro on Oct 03, 2007 06:54 PM  Permalink 

Which industry other than IT, RE (ofcource political always) is doing well in India? Expect country head count growth rest all industries are dependents on $$$$ only...

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good one..
by Chaman Chambu on Oct 03, 2007 06:40 PM  Permalink 

kind of radical idea..but good one..very logical..hope indian companies take this up

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that sucks
by naresh bethi on Oct 03, 2007 06:37 PM  Permalink 

It means all Software Companies move their jobs to dollar dominated countries? then there wont be any software growth?

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