Our economy (I exclusively mean the IT sector), at the best of times, can be classified as an exchange rate driven economy. We think we provide services, but the only thing we ever provide to any country is cheap labour. The only reason we became the back offices is due to the cheap labour. And this "cheap labour" is a direct result of the exchange rate. Back in the late 90s and early years of 21st century, the USD vs INR was a healthy 47-50. Now due to various factors (those are a topic of their own), the rate is somewhere around 40ish.
Optimistic punters (well.. it depends where you stand on the issue) believe and hope that the rate will go back to being around 43-45 sometime soon. The pessimistic ones say it will go down to around 35-39. Whatever and whoever might win, it is us, the Indians who lose big time. The fact that our salaries, bonuses, way of life is dependent on something as finicky as the exchange rate is what pisses me off!!
If you were to ask me, if I am happy with the way our INR is rising vis-a-vis the USD, I would say that I couldn't have asked for more. I would like the INR to go to around the 30 mark. Will that screw our big IT companies? Oh Yeah. It will screw them BIG TIME!!! Then why am I happy?
There is a small story I would like to narrate. Back in the late 80s and early 90s, after our 1974 nuclear explosion, America had issued a lot of sanctions due to which we were not able to procure (read buy) treating heavy water technology from outside (one of the many technologies that were banned from being sold to us). Our engineers had to work on their own to produce it. The result? We now have the cheapest and equally working heavy water treatment technology that was indigenously developed. In fact, it is so advanced that we could, if wanted produce it in assembly line(http://www.hindu.com/seta/2007/04/19/stories/2007041900331700.htm)!!!
Coming back to our scenario, we have one of the world's largest IT talent. One of the world's brightest engineers and brains.. but to what effect?? All we are doing is, at the end of the day, cheap labour. And we will be facing this shitty scenario as long as we are dependent on the exchange rate for our survival.
If the USD goes down even further, there are plenty of reasons and chances that it will, it will trigger a recession in our IT industry. I have enough trust in my fellow countrymen (and women for that matter) that we will then work towards being a product based industry. Like Google, Adobe, MSFT, SUN, Oracle etc to name a few. Yes, we do have the talent to work and produce the finest products, what is lacking is the passion and the "need". This USD crisis will give us the "need"!!!
And oneday, hopefully in the near future we will probably see Infosys OS or TCS Search or Satyam DB!!!!
**Here by economy I mean the economy related exclusively to the IT (Information Technology) industry.
Optimistic punters (well.. it depends where you stand on the issue) believe and hope that the rate will go back to being around 43-45 sometime soon. The pessimistic ones say it will go down to around 35-39. Whatever and whoever might win, it is us, the Indians who lose big time. The fact that our salaries, bonuses, way of life is dependent on something as finicky as the exchange rate is what pisses me off!!
If you were to ask me, if I am happy with the way our INR is rising vis-a-vis the USD, I would say that I couldn't have asked for more. I would like the INR to go to around the 30 mark. Will that screw our big IT companies? Oh Yeah. It will screw them BIG TIME!!! Then why am I happy?
There is a small story I would like to narrate. Back in the late 80s and early 90s, after our 1974 nuclear explosion, America had issued a lot of sanctions due to which we were not able to procure (read buy) treating heavy water technology from outside (one of the many technologies that were banned from being sold to us). Our engineers had to work on their own to produce it. The result? We now have the cheapest and equally working heavy water treatment technology that was indigenously developed. In fact, it is so advanced that we could, if wanted produce it in assembly line(http://www.hindu.com/seta/2007/04/19/stories/2007041900331700.htm)!!!
Coming back to our scenario, we have one of the world's largest IT talent. One of the world's brightest engineers and brains.. but to what effect?? All we are doing is, at the end of the day, cheap labour. And we will be facing this shitty scenario as long as we are dependent on the exchange rate for our survival.
If the USD goes down even further, there are plenty of reasons and chances that it will, it will trigger a recession in our IT industry. I have enough trust in my fellow countrymen (and women for that matter) that we will then work towards being a product based industry. Like Google, Adobe, MSFT, SUN, Oracle etc to name a few. Yes, we do have the talent to work and produce the finest products, what is lacking is the passion and the "need". This USD crisis will give us the "need"!!!
And oneday, hopefully in the near future we will probably see Infosys OS or TCS Search or Satyam DB!!!!
**Here by economy I mean the economy related exclusively to the IT (Information Technology) industry.
