Rupee depreciation will bring cheer to IT, BPOs
However, some of the positive impact will be eroded by other currencies like pound and euro, which too are depreciating against the US dollar. IT hubs | IT megavendors
By Mini Joseph Tejaswi & Swati Anand, TNN |
BANGALORE: You may think nobody will have anything to cheer about in the current market situation. But some do-exporters, for instance.
The rupee���s fall to 50 to a dollar is likely to bring joy to sectors such as IT and BPO. This depreciation offsets a part of the adverse impact of the decline in volumes that exporters anticipate.
V Balakrishnan, CFO of Infosys Technologies, said the rupee factor would benefit the tech industry because for every 1% depreciation/appreciation of the rupee, there was a 40-50 basis points impact on operating margins.
However, some of the positive impact will be eroded by other currencies like pound and euro, which too are depreciating against the US dollar. ���The challenge is that cross currencies may cut the benefit. It���s time for enterprises to closely monitor and hedge the risk,������ said Balakrishnan.
���It���s good news for IT and more so for BPOs,��� said Avinash Vashishtha, MD of advisory firm Tholons. ���As the trend is visible across other currencies, companies exposed to Europe to the extent of 30-35 % of their revenue may not greatly benefit from the rupee effect. But some benefit will be there even then.������
The rupee���s fall to 50 to a dollar is likely to bring joy to sectors such as IT and BPO. This depreciation offsets a part of the adverse impact of the decline in volumes that exporters anticipate.
V Balakrishnan, CFO of Infosys Technologies, said the rupee factor would benefit the tech industry because for every 1% depreciation/appreciation of the rupee, there was a 40-50 basis points impact on operating margins.
However, some of the positive impact will be eroded by other currencies like pound and euro, which too are depreciating against the US dollar. ���The challenge is that cross currencies may cut the benefit. It���s time for enterprises to closely monitor and hedge the risk,������ said Balakrishnan.
���It���s good news for IT and more so for BPOs,��� said Avinash Vashishtha, MD of advisory firm Tholons. ���As the trend is visible across other currencies, companies exposed to Europe to the extent of 30-35 % of their revenue may not greatly benefit from the rupee effect. But some benefit will be there even then.������
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