Finally something that might kill outsourcing
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1 U.S. dollar = 40.3404736 Indian rupees :eek: A couple of years ago it was as high as 47 rupees, and then it stabilized around 45 rupees. But in the last few months, the Indian rupee has gone up steadily and the US dollar has fallen drastically. Major Indian software companies like Infosys, Wipro, TCS etc. reported a 10% fall in profits in the last quarter (curiously that matched the drop in the dollar value). If this continues in this fashion, outsourcing will lose much of its dollar-rupee-difference based advantage. It's probably not just India that's affected, Canada must be affected too. When Smitha and I lived in Toronto, 1 US$ was about 1.18 Canadian dollar. This morning the ratio was : 1 U.S. dollar = 1.05419956 Canadian dollars I am sure this would affect companies in Canada that sell in USD.
Regards, Nish
Nish’s thoughts on MFC, C++/CLI and .NET (my blog)
My latest book : C++/CLI in Action / Amazon.com linkNishant Sivakumar wrote:
I am sure this would affect companies in Canada that sell in USD.
Understatement of the century! We've had to raise our prices steadily for the last few years just to keep up.
"I don't want more choice. I just want better things!" - Edina Monsoon
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1 U.S. dollar = 40.3404736 Indian rupees :eek: A couple of years ago it was as high as 47 rupees, and then it stabilized around 45 rupees. But in the last few months, the Indian rupee has gone up steadily and the US dollar has fallen drastically. Major Indian software companies like Infosys, Wipro, TCS etc. reported a 10% fall in profits in the last quarter (curiously that matched the drop in the dollar value). If this continues in this fashion, outsourcing will lose much of its dollar-rupee-difference based advantage. It's probably not just India that's affected, Canada must be affected too. When Smitha and I lived in Toronto, 1 US$ was about 1.18 Canadian dollar. This morning the ratio was : 1 U.S. dollar = 1.05419956 Canadian dollars I am sure this would affect companies in Canada that sell in USD.
Regards, Nish
Nish’s thoughts on MFC, C++/CLI and .NET (my blog)
My latest book : C++/CLI in Action / Amazon.com linkIt's all part of Bush's plan to turn the U.S. into another Argentina. Except in this case, he'll bring down the entire world economy as well. Marc
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1 U.S. dollar = 40.3404736 Indian rupees :eek: A couple of years ago it was as high as 47 rupees, and then it stabilized around 45 rupees. But in the last few months, the Indian rupee has gone up steadily and the US dollar has fallen drastically. Major Indian software companies like Infosys, Wipro, TCS etc. reported a 10% fall in profits in the last quarter (curiously that matched the drop in the dollar value). If this continues in this fashion, outsourcing will lose much of its dollar-rupee-difference based advantage. It's probably not just India that's affected, Canada must be affected too. When Smitha and I lived in Toronto, 1 US$ was about 1.18 Canadian dollar. This morning the ratio was : 1 U.S. dollar = 1.05419956 Canadian dollars I am sure this would affect companies in Canada that sell in USD.
Regards, Nish
Nish’s thoughts on MFC, C++/CLI and .NET (my blog)
My latest book : C++/CLI in Action / Amazon.com linkThey're letting the dollar drop to get the import/export ratio in balance. The U.S. has been importing way more than exporting for a period of timen and spending too much on credit. At some point things are going to change ofcourse.
Wout
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They're letting the dollar drop to get the import/export ratio in balance. The U.S. has been importing way more than exporting for a period of timen and spending too much on credit. At some point things are going to change ofcourse.
Wout
wout de zeeuw wrote:
They're letting the dollar drop
There is no letting to it. It has to happen because of simple economic principles: supply and demand. Less foreign investors want dollars because of several factors like the deficit spending thats been taking place for the last 3 or 4 years. It will be interesting to see if the next administration can "correct" this in light of the spineless congress. But, it's a great time to be a currency trader or commodity (metals) investor.
My Blog A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects. - -Lazarus Long
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Vikram A Punathambekar wrote:
Been napping? The Rupee has been between 40 and 41 against the dollar for about 6 months now. Word is that it would have risen further, to ~35, but the RBI stepped in lest the IT and export sectors take a total beating.
Nope, I haven't been napping. I am extremely conscious of the USD-INR conversion because I have a car-loan (not paid off yet) where the monthly payment is in INR and every month I notice that I have to pay an amount in USD that is on the rise every single month :-)
Vikram A Punathambekar wrote:
Word is that it would have risen further, to ~35, but the RBI stepped in lest the IT and export sectors take a total beating.
Yep, I read that too - that it's artificially stagnated at around 40 rupees to the dollar when it should really have been closer to 35. This is bad for Indians living abroad, but personally speaking I am delighted for India :cool:
Regards, Nish
Nish’s thoughts on MFC, C++/CLI and .NET (my blog)
My latest book : C++/CLI in Action / Amazon.com linkNishant Sivakumar wrote:
where the monthly payment is in INR and every month I notice that I have to pay an amount in USD that is on the rise every single month
Can you sell the car and cut your losses? -- modified at 0:06 Monday 6th August, 2007
My Blog A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects. - -Lazarus Long
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1 U.S. dollar = 40.3404736 Indian rupees :eek: A couple of years ago it was as high as 47 rupees, and then it stabilized around 45 rupees. But in the last few months, the Indian rupee has gone up steadily and the US dollar has fallen drastically. Major Indian software companies like Infosys, Wipro, TCS etc. reported a 10% fall in profits in the last quarter (curiously that matched the drop in the dollar value). If this continues in this fashion, outsourcing will lose much of its dollar-rupee-difference based advantage. It's probably not just India that's affected, Canada must be affected too. When Smitha and I lived in Toronto, 1 US$ was about 1.18 Canadian dollar. This morning the ratio was : 1 U.S. dollar = 1.05419956 Canadian dollars I am sure this would affect companies in Canada that sell in USD.
Regards, Nish
Nish’s thoughts on MFC, C++/CLI and .NET (my blog)
My latest book : C++/CLI in Action / Amazon.com linkGet ready for gold to be at $700/oz :cool: Several governments have been trying to cap the price of gold by dumping huge amounts. Just recently, the Swiss National Bank sold 13.9 tones in June. In the end, market forces usually prevail and I think we will be seeing multi decade highs for gold, silver, and other precious metals.
My Blog A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects. - -Lazarus Long
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It's all part of Bush's plan to turn the U.S. into another Argentina. Except in this case, he'll bring down the entire world economy as well. Marc
My conspiracy theory is that congress and the presidency is and has been deliberately debasing the dollar to pave the way for an "American Union."
My Blog A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects. - -Lazarus Long
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Nishant Sivakumar wrote:
where the monthly payment is in INR and every month I notice that I have to pay an amount in USD that is on the rise every single month
Can you sell the car and cut your losses? -- modified at 0:06 Monday 6th August, 2007
My Blog A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects. - -Lazarus Long
The car is outsourced too :doh:
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1 U.S. dollar = 40.3404736 Indian rupees :eek: A couple of years ago it was as high as 47 rupees, and then it stabilized around 45 rupees. But in the last few months, the Indian rupee has gone up steadily and the US dollar has fallen drastically. Major Indian software companies like Infosys, Wipro, TCS etc. reported a 10% fall in profits in the last quarter (curiously that matched the drop in the dollar value). If this continues in this fashion, outsourcing will lose much of its dollar-rupee-difference based advantage. It's probably not just India that's affected, Canada must be affected too. When Smitha and I lived in Toronto, 1 US$ was about 1.18 Canadian dollar. This morning the ratio was : 1 U.S. dollar = 1.05419956 Canadian dollars I am sure this would affect companies in Canada that sell in USD.
Regards, Nish
Nish’s thoughts on MFC, C++/CLI and .NET (my blog)
My latest book : C++/CLI in Action / Amazon.com linkThere is some article-analysis on this topic on Rediff: http://www.rediff.com/money/2007/jun/19rupee.htm[^]
Vasudevan Deepak Kumar Personal Homepage Tech Gossips
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1 U.S. dollar = 40.3404736 Indian rupees :eek: A couple of years ago it was as high as 47 rupees, and then it stabilized around 45 rupees. But in the last few months, the Indian rupee has gone up steadily and the US dollar has fallen drastically. Major Indian software companies like Infosys, Wipro, TCS etc. reported a 10% fall in profits in the last quarter (curiously that matched the drop in the dollar value). If this continues in this fashion, outsourcing will lose much of its dollar-rupee-difference based advantage. It's probably not just India that's affected, Canada must be affected too. When Smitha and I lived in Toronto, 1 US$ was about 1.18 Canadian dollar. This morning the ratio was : 1 U.S. dollar = 1.05419956 Canadian dollars I am sure this would affect companies in Canada that sell in USD.
Regards, Nish
Nish’s thoughts on MFC, C++/CLI and .NET (my blog)
My latest book : C++/CLI in Action / Amazon.com linkI doub't it... The exchange rates did not stop the UK's biggest and richest exams board making the decision recently to ask it's developers to reapply for their own jobs. The decision was made by someone in HR to outsource future development work to India so money could be saved. At the same time (to my knowledge) at least 2 senior managers were given large redundancy packages. I have a number of indian friends who have all come to the UK to find work and make money, but I don't know anyone who has gone to Mumbia from the UK. I wonder where this is all going to stop. Regards Tim
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1 U.S. dollar = 40.3404736 Indian rupees :eek: A couple of years ago it was as high as 47 rupees, and then it stabilized around 45 rupees. But in the last few months, the Indian rupee has gone up steadily and the US dollar has fallen drastically. Major Indian software companies like Infosys, Wipro, TCS etc. reported a 10% fall in profits in the last quarter (curiously that matched the drop in the dollar value). If this continues in this fashion, outsourcing will lose much of its dollar-rupee-difference based advantage. It's probably not just India that's affected, Canada must be affected too. When Smitha and I lived in Toronto, 1 US$ was about 1.18 Canadian dollar. This morning the ratio was : 1 U.S. dollar = 1.05419956 Canadian dollars I am sure this would affect companies in Canada that sell in USD.
Regards, Nish
Nish’s thoughts on MFC, C++/CLI and .NET (my blog)
My latest book : C++/CLI in Action / Amazon.com linkIt's no news. Dollar is faring worse and worse during the last three years. One Euro is now 1.35 dollars and more. And the Federal Bank doesn't do anything drastic for that, sacrificing buying power and control of the world economy to get some jobs back to US (while on the other hand Germany started worrying because if Euro goes higher than 1.40 the new rise of the German economy might be slowed down). Of course that's a perfect time for non-Americans to buy rpg books and card games (most printed in the States and occasionally Canada) :P. Or give that 5 dollars (paypal translates it to 3.73 euros while in the past it could have been as high as 6) donation to that software guy who wrote that nice freeware etc etc.
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I take it the car loan you are talking about is in India?
Nishant Sivakumar wrote:
Yep, I read that too - that it's artificially stagnated at around 40 rupees to the dollar when it should really have been closer to 35.
I remember in the early 90s it was ~20 to the dollar and the next thing I knew it was ~40. Of course, I must have been ~10 years old, so...
Nishant Sivakumar wrote:
This is bad for Indians living abroad, but personally speaking I am delighted for India
It's also bad for anyone who exports things to the US (including IT companies) but I too am delighted. :) Looks like my stalker is back. :suss:
Cheers, Vıkram.
After all is said and done, much is said and little is done.
It's not delightful a tall for me untill we foolish Indians do not stop buying imported goods. As the money has gone up, people have started expensing more in US and thus the US market is taking hold more and more in Indian people. This is bad for future unless we stop buying like a fool.
Jwalant Soneji (BE IT) Mobile: +91 9969059127 http://jnsoneji.spaces.live.com http://jnsoneji.blogspot.com
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I doub't it... The exchange rates did not stop the UK's biggest and richest exams board making the decision recently to ask it's developers to reapply for their own jobs. The decision was made by someone in HR to outsource future development work to India so money could be saved. At the same time (to my knowledge) at least 2 senior managers were given large redundancy packages. I have a number of indian friends who have all come to the UK to find work and make money, but I don't know anyone who has gone to Mumbia from the UK. I wonder where this is all going to stop. Regards Tim
Sp00kyTheCat wrote:
The exchange rates did not stop the UK's biggest and richest exams board making the decision recently to ask it's developers to reapply for their own jobs.
It wouldn't do. It's the dollar that's hit the floor - the pound is as strong as it ever was.
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1 U.S. dollar = 40.3404736 Indian rupees :eek: A couple of years ago it was as high as 47 rupees, and then it stabilized around 45 rupees. But in the last few months, the Indian rupee has gone up steadily and the US dollar has fallen drastically. Major Indian software companies like Infosys, Wipro, TCS etc. reported a 10% fall in profits in the last quarter (curiously that matched the drop in the dollar value). If this continues in this fashion, outsourcing will lose much of its dollar-rupee-difference based advantage. It's probably not just India that's affected, Canada must be affected too. When Smitha and I lived in Toronto, 1 US$ was about 1.18 Canadian dollar. This morning the ratio was : 1 U.S. dollar = 1.05419956 Canadian dollars I am sure this would affect companies in Canada that sell in USD.
Regards, Nish
Nish’s thoughts on MFC, C++/CLI and .NET (my blog)
My latest book : C++/CLI in Action / Amazon.com linkI worked in the US for 2.5 months last year, ending in July. When I left, the UD$2000 I had in the bank was worth NZ$3200. If I had left it there, instead of getting it out a month later, it would now be worth NZ$2600. When I closed the account the woman at the bank asked me why I was closing the account. I told her it was because Bush had wiped his ass with the economy. As well as the US dollar weakening, the NZ dollar is strengthening because of foreign investment. So our exporters - which is the majority of our businesses - are really feeling the pinch. The crazy thing is how quickly it's happening. If the dollar goes back to where it was, then there are going to be a lot of holes to fill in the NZ export market.
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Been napping? :-D The Rupee has been between 40 and 41 against the dollar for about 6 months now. Word is that it would have risen further, to ~35, but the RBI stepped in lest the IT and export sectors take a total beating.
Cheers, Vıkram.
After all is said and done, much is said and little is done.
Man, Brazil has the same, (outsourcing impact is evident, i work for Brazilian outsourcing companies for long time and really afraid) look this: Just to compare check our USD x BRZ conversion since 2002: 1 USD = 22-10-2002 R$ 3,954 22-10-2003 R$ 2,859 22-10-2004 R$ 2,848 01-08-2005 R$ 2,378 01-08-2006 R$ 2,189 01-08-2007 R$ 1,884
Anderson J. Almeida Systems Analyst SimSysBr
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It's not delightful a tall for me untill we foolish Indians do not stop buying imported goods. As the money has gone up, people have started expensing more in US and thus the US market is taking hold more and more in Indian people. This is bad for future unless we stop buying like a fool.
Jwalant Soneji (BE IT) Mobile: +91 9969059127 http://jnsoneji.spaces.live.com http://jnsoneji.blogspot.com
This is the attitude the justifies Xenophobia. Perhaps it would be a better idea if Americans stopped foolishly outsourcing to India! Buying services from India has no positive effects for the vast majority of Americans. They're annoyed at the so-called tech support call centers. Arrogant and a pointless wastes of time. They're annoyed at the H1b visas, again undercutting the fair wages that would have to be paid to a US citizen. You're endorsing that typical vampire attuded, fosterd by Japan, to sell what they can produce more efficiently - and block out American competition with legislation. Although India is by no means alone in this attitude, there is a foolish aspect to American-Indian trade. That is our allowance of you to run a huge trade surplus against us Perhaps if we stopped all trade - both ways - you'd feel better (?) Right about now, thanks to you, I would.
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This is the attitude the justifies Xenophobia. Perhaps it would be a better idea if Americans stopped foolishly outsourcing to India! Buying services from India has no positive effects for the vast majority of Americans. They're annoyed at the so-called tech support call centers. Arrogant and a pointless wastes of time. They're annoyed at the H1b visas, again undercutting the fair wages that would have to be paid to a US citizen. You're endorsing that typical vampire attuded, fosterd by Japan, to sell what they can produce more efficiently - and block out American competition with legislation. Although India is by no means alone in this attitude, there is a foolish aspect to American-Indian trade. That is our allowance of you to run a huge trade surplus against us Perhaps if we stopped all trade - both ways - you'd feel better (?) Right about now, thanks to you, I would.
Dear Balboos, Perhaps you don't have any idea of what and how much Indians import from US. And well about the call center headaches and how the BPO work is given to India...I am working in a Medical BPO as a software programmer and the guy sharing my seat in the US day shift is good friend of mine. I know that it is not a bad deal for US people to outsource and the Hospital in US has requested it's patients to understand a small thing that: "If we don't outsource, we are not able to provide you with these many services." So, please don't bother about it, outsourcing makes life of US people more easy and comfortable.
Jwalant Soneji (BE IT) Mobile: +91 9969059127 http://jnsoneji.spaces.live.com http://jnsoneji.blogspot.com
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1 U.S. dollar = 40.3404736 Indian rupees :eek: A couple of years ago it was as high as 47 rupees, and then it stabilized around 45 rupees. But in the last few months, the Indian rupee has gone up steadily and the US dollar has fallen drastically. Major Indian software companies like Infosys, Wipro, TCS etc. reported a 10% fall in profits in the last quarter (curiously that matched the drop in the dollar value). If this continues in this fashion, outsourcing will lose much of its dollar-rupee-difference based advantage. It's probably not just India that's affected, Canada must be affected too. When Smitha and I lived in Toronto, 1 US$ was about 1.18 Canadian dollar. This morning the ratio was : 1 U.S. dollar = 1.05419956 Canadian dollars I am sure this would affect companies in Canada that sell in USD.
Regards, Nish
Nish’s thoughts on MFC, C++/CLI and .NET (my blog)
My latest book : C++/CLI in Action / Amazon.com linkWell, I am from Pakistan. Working as a freelancer in US$ from 5 years and as per I remember, $ is ~ 60 PKR (Pak Rupees) all the time. It goes up to 61 and the maximum fall is of 58. So if this is the concern, I think Pakistan is not affected. I am not an economist, but I heard that the fall in exchange rate (like INR) shows the good economy of the country. Well, the point is, when Indian govt. have to pay someone in US$, he has to pay less in INR. That sounds good for the govt. Isn't it? Every effect have two other effects, positive and negative. Lets see if the positive one is more benificial or negative one is worse. Sameers
FREE MSN Auto Responder[^] History Remember Vendors, NOT Developers
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Dear Balboos, Perhaps you don't have any idea of what and how much Indians import from US. And well about the call center headaches and how the BPO work is given to India...I am working in a Medical BPO as a software programmer and the guy sharing my seat in the US day shift is good friend of mine. I know that it is not a bad deal for US people to outsource and the Hospital in US has requested it's patients to understand a small thing that: "If we don't outsource, we are not able to provide you with these many services." So, please don't bother about it, outsourcing makes life of US people more easy and comfortable.
Jwalant Soneji (BE IT) Mobile: +91 9969059127 http://jnsoneji.spaces.live.com http://jnsoneji.blogspot.com
Jwalant Natvarlal Soneji wrote:
Dear Balboos, Perhaps you don't have any idea of what and how much Indians import from US.
So long as there's a trade balance in India's favor, you have nothing to complain about - I DO! And beyond that, the extraordinary scale of the piracy of intellectual property in India is unbelievable - and only under some control now that your government is realizing it will have such property of its own to protect. Until then, it was ignored. Import? Stolen in more like it. And, of course, your lovely manufacture of, and export, of counterfeit drugs. Maybe you should reevaluate just how much is really imported and how much is your own immoral neglect of all conceptions of patents, trademarks, and copyrights.
Jwalant Natvarlal Soneji wrote:
So, please don't bother about it, outsourcing makes life of US people more easy and comfortable.
To put it gently, What a Load of Crap! The only ones benifitting from the outsourcing are the employed Indian citizens, and the wealthy top corporate management pocketing some extra cash. The unemployed US citizens - their life is much easier, since they have no work! That is what you meant by easier, isn't it? That quote from the hospital you supply: Pure elephant dung. The services were supplied before being outsourced. Outsourcing of medical billing, or any other kind, simply adds to local aggrevation and death-wishes for the condesending voice on the other end of the telephone when a call is made questioning the work. You philosophy is typical modern mercantilism. Have no fear - the revolution has begun with the toxic manufacturing from China being the long-awaited wakeup call. When you can no longer dump your counterfeit goods in the United States, and your call centers go silent, you'll start having second thoughts about the exploitation the United States by India that you so strongly favor at this time.
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Well, I am from Pakistan. Working as a freelancer in US$ from 5 years and as per I remember, $ is ~ 60 PKR (Pak Rupees) all the time. It goes up to 61 and the maximum fall is of 58. So if this is the concern, I think Pakistan is not affected. I am not an economist, but I heard that the fall in exchange rate (like INR) shows the good economy of the country. Well, the point is, when Indian govt. have to pay someone in US$, he has to pay less in INR. That sounds good for the govt. Isn't it? Every effect have two other effects, positive and negative. Lets see if the positive one is more benificial or negative one is worse. Sameers
FREE MSN Auto Responder[^] History Remember Vendors, NOT Developers
The problem is that India (or other country who's currency is rising agains US$) finds its goods more difficult to export (to US) and imports more attractive. This will begin to effect the trade balance to be more favorable for US (currently running a deficit almost everywhere). The current classic example: China pegged its currecy to 8 Wan/$ - even when the true rate should have been more like 3:1. They will not allow their currency to float relative to the dollar. THe result is that their labor costs are rediculously low and they export huge amounts to the US. Similarly, they allow in few inports, and those they do are artificially expensive for their citizens. China runs an enormous trade surplus with the US. The primary interests of the economic forces is to get and maintain market share and a postiive trade balance. They wellfare of their citizens - and long-term consequences to the world's economoy have little effect in the way of a driving force for the decisions.
"The difference between genius and stupidity is that genius has its limits." - Albert Einstein