Is the Domestic Indian Outsourcing Market Poised for Rapid Growth?
Posted July 4th, 2008 by DiscussHR
India has always been an attractive destination for offshoring - reasons being availability of skilled manpower (English speaking workforce), strong business ties with US, etc. In addition the lower rupee value against the US dollar is one of the crucial factors that make India an ideal place for outsourcing.
But a sudden steep rise in the rupee value during early 2007 didn't seem to go well with some industries including the outsourcing community. The value of the dollar incessantly went down and touched Rs. 39.25 in October 2007, before bouncing back to currently being around Rs. 43 - thus bringing a respite to the industry.
Due to the upswing of the rupee value business outsourcing enterprises' bottomlines started eroding fast. The industry initially got edgy, but remained poised - thinking that currency fluctuation is an aberration. People from the industry are of the opinion that the Indian market is growing mature enough to bear the impact of the currency fluctuation...more
By Gaurav Kumar