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  (Es)Cape Fear Finally ? A Kaytek Offsourcing Consulting Insight |
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(Es)Cape Fear Finally ?
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(Es)Cape Fear Finally ? A Kaytek Offsourcing Consulting Insight |
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(Es)Cape Fear Finally ? An earlier version of this article was originally written as a weblog (44th in a continuing series) on an external website on 31st March 2004. Since it deals with the Rise of the Indian Rupee against the US Dollar, a topic that will perhaps remain in focus for the years to come, it is being reproduced below. Fear was the finale today for tech companies here. March 31st. The last day of India's financial year. Why ? Today, the Rupee rose sharply against the Dollar, closing at it's highest level since the last four years. |
Causing Tech Companies here to worry a lot. Because a Rising Rupee hurts all Indian Exporter's Profit Margins (including IT Offshoring Services ) Badly. But remember, we were forewarned. Remember the Roaring R's Blog written on January 29th ? Also, the other two R's - Reals and Roubles are not doing too badly for themselves, having appreciated in the last two months. Except perhaps for the Chinese Renminbi which remains faithfully married to the Dollar at a rate of 1 US Dollar To 8.3 Chinese Renminbi ( just like the maximum file lengths in the good Old Microsoft DOS File System. Sorry for repeating, I just could not resist it.) What else fuelled the fear for Tech Companies here ? India's largest Outsourcing Deal (US 750 Million $) was announced. With A Deadly Difference. Roles Reversed. An Indian company - Bharati Telecom Group as the Outsourcer. A US Company - IBM as the Supplier. Sigh. More Cause for Worry ? And Some More in the future ? At a party last week at the Marriot in Mumbai, I met a Tech Stocks Analyst. |
I asked her " Why are Software Stocks Sliding ? " "Mr. Kerry" was her crisp answer. In this 44th Blog, the Dollar-Rupee Exchange Rate is near 44, maybe the future 44th US President (whoever it may be), may well ask about Offshore Outsourcing - " Is the Feared Stalker finally fading ? " With the Dollar Down, was anyone not fearful ? My nephew. When I met him last night. He works for one of the largest US Multinational Companies in Mumbai. With the Rising Rupee, His Business Targets (set in US $) have headed southwards. And still dropping. I hope his US boss is not reading this blog. Nor following the Free-Fall USD Exchange Rate. Otherwise, he may hound my poor nephew for the rest of the year. Like, the feared stalking villian in the Old American Movie - Cape Fear. Who also helped give the title of this article.  Buy the Cape Fear DVD from the Amazon Website
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