News - Why Weak Rupee and USD at 60 to 70 Means Job Security for Indian IT Employees in COMMUNITY CENTER - Every negative, has some positive in it too.
In a similar way, while weak Rupee and USD at 60 to ...
08-30-2013 02:32 PM
Why Weak Rupee and USD at 60 to 70 Means Job Security for Indian IT Employees
Every negative, has some positive in it too.
In a similar way, while weak Rupee and USD at 60 to 70 levels or worse, is bad for overall Indian Economy, its a positive for Indian IT (Software) employees specifically and any employee who gets his revenue from US or in USD.
Let me explain in plain numbers. Lets assume you are an employee of HP ( Hewlett Packard), IBM, Accenture or any US company which has employees in India. Also applies to TCS, Infosys, Wipro employees as they again charge or bill customers in USD
Let us assume that an average Software Engineer gets 6 Lakhs per year. When USD to INR was at 40 (Years 2008 to 2009), an American company would need to pay you 15,000 in US Dollars (USD) [ (6 Lakhs / 40) = 9000 USD ].
Now, when USD to INR is at 66, an american company only needs to pay 9000 USD [ (6 Lakhs / 66) = 9000 USD ]. That's savings of 6000 USD per employee. Simply put, we have become cheap resources for American companies to employ us. This in-turn means more Job Security for Indian IT employees.
HP has 15,000 employees in India last i knew. That means HP will save (15,000 * 9000) = 135 Million USD, compared to 2008, 2009 period.
And, if you think straight, a lot of companies fired Indian Employees in 2008 to 2009 because we were expensive employees at 40 INR per USD. Yes, Recession contributed to the firing. But, currency conversion numbers actually contributed more towards firing.
So, breathe easy. Feel safe if you are an IT employee. More so if you have good skills. Go ahead and ask your management for hikes citing this reason and Good luck
We may soon see better hiring as well
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