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o, the combination of efficient front-end skills and a low cost back-end is proving invaluable. But amidst exceptional results, fears arise concerning the consistency of such brilliance from the IT bandwagon. Strengthening of the rupee–which has appreciated by over 5% since February 2007 – has become a major threat. Analysts at Taurus Mutual Fund comment, “This was possible because IT companies had made hedging arrangements for currency fluctuations.” Challenging this, Vineet Nayar, President, HCL Technologies remarks, “We do not have a rupee appreciation clause in the deals...” The slowdown in the US economy, has also forced IT majors to look at other markets concerning, which R. K. Gupta, MD, Taurus MF opined, “While Europe is growing at 14%, Australia & New Zealand grew at 16.3% on a CQGR basis, encouraging lesser dependency on the US.”
Nevertheless, the growth statistics indicate how Indian IT firms are successfully taking up each challenge head on. The roadmap now is clearly towards expanding in non-US destinations. Also critical will be timely acquisitions and tapping of other potential low cost destinations for off shoring, considering the crippling talent shortage as well as cost control. IT biggies like TCS, Wipro & Infosys have already taken the lead in this respect, by setting up operations in South America, Eastern Europe as well as Asia Pacific. With this single minded commitment to growth, Indian IT looks set to take all the short term impediments in their stride.
For Complete IIPM Article, Click on IIPM Article
o, the combination of efficient front-end skills and a low cost back-end is proving invaluable. But amidst exceptional results, fears arise concerning the consistency of such brilliance from the IT bandwagon. Strengthening of the rupee–which has appreciated by over 5% since February 2007 – has become a major threat. Analysts at Taurus Mutual Fund comment, “This was possible because IT companies had made hedging arrangements for currency fluctuations.” Challenging this, Vineet Nayar, President, HCL Technologies remarks, “We do not have a rupee appreciation clause in the deals...” The slowdown in the US economy, has also forced IT majors to look at other markets concerning, which R. K. Gupta, MD, Taurus MF opined, “While Europe is growing at 14%, Australia & New Zealand grew at 16.3% on a CQGR basis, encouraging lesser dependency on the US.”Nevertheless, the growth statistics indicate how Indian IT firms are successfully taking up each challenge head on. The roadmap now is clearly towards expanding in non-US destinations. Also critical will be timely acquisitions and tapping of other potential low cost destinations for off shoring, considering the crippling talent shortage as well as cost control. IT biggies like TCS, Wipro & Infosys have already taken the lead in this respect, by setting up operations in South America, Eastern Europe as well as Asia Pacific. With this single minded commitment to growth, Indian IT looks set to take all the short term impediments in their stride.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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