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Indian IT & ITES Sector: Redefining Strategies in the Era of Appreciating Rupee

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 3
Indian IT & ITES Sector:
Strategies Era of
in Redefining
Appreciating Rupee
Pankaj Madhani!
ABSTRACT
India has achieved remarkable
success in the
25% of Indian export. The software industry.
purpose of this paper is to highlightSoftware accounts
software industry. More than two-thirds of the growth of Indian
to export sales. The software industry's sales were due
resources, including technical skills and
contributed to the competitive position of the Indian cost competency have

appreciation of rupee against US dollar squeezes marginsoftuware

of
industry. However
other factors such as attrition software firms. Various
rate, wage inflation, competition etc. also
performance of software sector. Paper also compares Indian affects
with Chinese market. Paper also underlines software market scenario
emerging challenges for Indian Software
Industry and identifies various strategic options available.

INTRODUCTION
The rapidly expanding service sector is emerging major contributor to the
as a
Indian economic growth. IT (lnformation Technology) and ITES (IT Enabled
Services) segments remain the key drivers of the growth of this sector.
fiscal 2006-07, software service exports grew by 33% to rake in revenues ofDuring
$31.8
billion against $23.6 billion in the year 2005-06, while domestic segment grew by
23% with revenues of $8.2 billion against $6.7 billion in the year 2005-06. For
year
2007-08 export growth is projected at 26-29%, IT services is expected to be in range
of $28-29 billion while BPO revenues is expected to be $10.5 $11 billion range.
Indian IT and ITES sector is confident of achieving the US$ 80 billion in annual
revenue by 2010 from expected value of $50 billion in 2007-08. It would add 8
percent to India's GDP by 2010 from present level of 5.4 percent. Along with higher
growth there are many challenges emerging. The paper identifies emerging
challenges. Iacreasing wage costs and the rapidly appreciating rupee are taking

1. Assistant Professor, ICFAI Business School Ahmedabad

133
Globalization Opportunities and Challenges

a toll on its margins. in the dollar rupee exchange rate

Every percentage drop
net margins. This paper
implies an impact of around 0.40 percent on the firm's
evaluates various strategic options for IT and ITES sectors.

HISTORY OF OUTSOURCING
Basically, an organization can get its information systems from two sources:
internally, from its own IT department, or externally, through outeourcing (McFarlan
and Nolan, 1995; Aubert et al., 1996). In-house provision is often seen as the best
way to provide an organization with IT services that are well adapted to support
its business activities while preserving its trademark processes and know-how
(Chesbrough and Teece, 1996). On the other hand, in-house provision has also been
described as excessively expensive, anachronistic and inefficient (Huber, 1993;
Fields, 1995). Internal IT projects are notorious for being long, late, and over
budget (The Standish Group, 1995; Rockart et al., 1996; Keil et al, 1998). Moreover,
they are said to distract a company from its core business by draining scarce
resources to accomplish an allegedly marginal activity. As reported by Earl (1996),
the critics of in-house development argue that a better solution is to outsource
those IT activities to specialists, thus permitting the company to focus on its core
business. The presumption underlining this argument is that specialists are better
equipped to take advantage of economies of scale while offering access to the best
IS development practices. The resultant savings should eventually translate in
more cost-effective IT services for the firm
(Gupta and Gupta, 1992; Fields, 1995;
Elmuti et al., 1998). Since the early 1990's, the outsourcing
approach has gained
both in popularity and importance, to the point that in some
IT function has been outsourced (Loh and
companies, the entire
Venkatraman, 1992a; Grover et al.,
1994).

OUTSOURCING: BENEFITS TO STAKEHOLDERS

In August 2003, the McKinsey Global Institute
published
economic benefits of off shoring between the United States and India
an analysis of the
(Farrell and
Agrawal, 2003a, 2003b). As per estimate of Farrell (2005), for every dollar of
spending that American firm's transfer to India, $1.46 in new wealth is created.
India receives $0.33, through wages paid to local
workers, profits earned by Indian
outsourcing providers and their suppliers, and additional taxes collected by the
government. The US economy captures the remaining $1.13, mainly
savings to businesses, increased exports to India, and through costt
US-invested offshoring providers (Farrell and repatriated earnings from
benefits from the additional economic Agrawal, 2003a). But the USA also
output that can be created when American
workers are re-employed in other jobs, and this
amounts to
(Farrell and Agrawal, 2003b). These savings can then be an additional $0.47
higher value-added opportunities to create sustainable reinvested in new and
also passed
on to consumers in the competitive advantages,
form of better prices, and thus
growth, and generate wealth for shareholders. generate volume
INDIAN IT & ITES INDUSTRY: AT A
India has achieved remarkable GLANCE
success in the software
for a mere 5% of Indian industry. In
export but today it has jumped to 25%. 1996,
it accounted
India holds a 44
34)
 Indian IT & ITES Sector: Redefining Strategies in Era of
Appreciating Rupee
percent share of the global offshore outsourcing market for software. From being
a mere $2 bilion industry in 1994-95, the Indian IT &
ITES industry has grown
phenomenally over the years. It recorded a 30.7 percent growth last year (2006
07) clocking in revenues of $39.6 billion. IT sector includes packaged software, IT
services and IT training. ITES includes all business processes being outsourced
or off-shored by companies facilitated by Internet, telecomn and similar means. As
many as 400 of the Fortune 500 companies either have their own centers in India
or are currently outsourcing work to Indian
technology companies.
According to NASSCOM (National Association of Software and Service Companies),
India's premier trade body of the IT software and service[ industry with 1200
members, export of IT and IT services in the year 2006-07 rose 33 % over the
previous year. India enjoys the confidence of major corporate of the world and
today has more than 95 countries outsourcing their work to India. More than 82%
of American companies grade India as their first choice for software outsourcing
The growth of the Indian software industry has been a phenomenal success when
measured against standard indicators such as growth in sales, employment and
exports, and especially when contrasted with the performance of other industrial
sectors in India. By 2008 India's software industry will employ more than four
million people and account for 7% of GDP and 30 % of foreign exchange earnings.
Indian firms have implemented rigorous quality standard in development and
delivery of software. As of December 2006, over 400 Indian companies have acquired
quality certifications with 82 companies certified at SEI CMM Level 5-higher than
any other country in the world. The Indian IT sector continues to chart double-
digit growth' thanks to increased outsourcing. Fig. I highlights growth of Indian
software industry.
The Growth of Software Revenues in India, 1993-2007
40.00

30.0 Exports ATotal

$ Billions

20.0

10.00

0.00
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
-t- --
2003 2004 2005 2006
i Exports 0.33 0.49 0.73 1.09 I.76 2.60 3.96 6.22 7.65 9.8812.90 17.70 23.60 31.30
Total 0.56 0.84 1.221.76 2.94 4.01 5.54 8.30 9.96 12.46 16.70 22.60 30.30 39.70
Year
Fig: I - Growth of Indian Software Industry.
The NASSCOM-CRISIL report titled "The Rising Tide Output and Employment
Lankages of 1T-ITES' says: Every rupee spent by the IT-1TES sector (on domestically-

[35]
 Globalization Opportunities and Challenges

sourced goods and services) translates into a total output of Rs 2 in the economy.
And for every job that is created in this sector, four jobs are created in the rest
of the economy.

EMERGING CHALLENGES FOR INDIAN IT & ITES INDUSTRY

The rising rupee and the fluctuating dollar have affected the Indian IT industry
adversely. The quick appreciation of the rupee in shorter time against the US
dollar is affecting the margins of Indian outsourcers as exporting firms are earning
in dollars while spending in rupees. Across a range of industrial sectors, software
accounted for the highest wage bills at a time when competitive pressure was
pushing billing rates downwards. Wage inflation and attrition rate are advereely
cting margin of Indian software firms. Increasing competition from global
technology majors has not only threatened the Indian IT industry's cost leadership,
Indian software companies have also been made to face intense
talent. Global giants such as IBM Global Services and Accenture
competition for
already have
opened offshore development centers in India. All these pressures mean flat
rates and higher employee costs billing
going forward. This is likely to affect margins and,
consequently, the profitability of Indian companies. Since beginning of this year
Indian IT firms are under performing BSE Sensex.
India's top four largest IT firms
viz. TCS, Infosys, Wipro and
Satyam under
downward trends in their stock price while BSE performing
are Sensex and showing
heights. Performance of these IT firms against BSE Sensex surging and scaling new
is
Sensex is explained by charts
at Annexure-I. Following are
major challenges faced by Indian software
industry.
Rupee Appreciation Against US Dollar
Indian IT firms are earning mostly in US dollars
while typically spending in
rupees. During last one year rupee has strengthened
1/2 year high against US dollar and has considerably. Rupee is at
appreciated
dollar's roller coaster ride causing decrease in
12 % in last 12 months
during
operating
Every 1% appreciation of the rupee negatively impacts margins for IT firms.
firms by 40 basis points. operating margins of T
Human Capital: Quality and
The real Quantity Issues
challenge for the IT sector is to enhance
the
employees, thus maintaining the attractiveness of quality and skil sets of
India for IT investments. So far
as men power is concerned India has quantity
problem as well as quality problem.
Quality problem can be tackled by improving the
education programs at the quality of technical and general
graduate and
undergraduate level. ImprovVing tae
standards of engineering education will boost the
professionals. India also needs to address the productivity of entry-level software
are facing crunch of skilled men quantity problem. Software ns
for firms. power. This has resulted in to
higher wage cosus

Wage Inflation
nere 18 a more increase in the
tne world. According to Hewitt
wage costs in India
cumpared to other pa of
nerease in Asia in Associates.,
2006 and will India had the highest average
continue to hold first sae
for
position in
the w
[36
 Indian IT &ITES Sector: Redefining Strategies in Era of Appreciating Rupee

the highest forecasted 'real' wage increases in 2007. Since last few ears, there
was average wage hike of 14-15% for the offshore employees and of 3-5% for onsite
staff. In the process, they have been closing the gap between India and other
emerging IT destinations.

High Attrition Rate

Attrition rate is creating a big challenge in India. Despite churning out 3 million
graduates each year, demand for experienced professional is outpacing supply
leading to attrition level of up to 25% or higher. Employee attrition results into
loss of knowledge attached with employee and probably this staff specific knowledge
might be captured by competitors of the firm. Attrition rate of 20% is very common
in Indian software sector. This is well above the international average of 15%. High
attrition ultimately leads to higher cost to the firm for hiring and training of new
employees. According to Kelly Bains (director of staffing solutions company
Addeco UK), the cost of attrition is 1.5 times the annual salary. Attrition at senior
levels also caused firms' to lose portions of their customer base to the competition.
Firms can control attrition by relying on proper documentation and start using
proprietary tools wherever possible.

Global Competition
Most outsourcers who are outsourcing to India are also actively looking at another
location to diversify their risk because of India's wage inflation, high attrition rate,
high cost of real estates and other issues. India still remains the world's top
outsourcing hub for IT & ITES but is facing increasing threat from rival China
and host of other countries due to above issues. It's because they want to reduce
the risk of sourcing from a single destination, so China is emerging as an alternate.
Comparison of Indian and Chinese IT/ITES sectors is given below.

India's IT & ITES Industry China's IT & ITES Industry

Favorable governmental policies New IT policy by government

Most of revenue generated from 60% of revenue is generated from
US and Europe market. Japan-Korea marketplace
Expected to be $80 billion market by Expected to be $7 billion export
2010-with modest growth rate of 28% market by 2010 with growth rate
of 38% while domestic market
revenue will be $21 billion.
Unlike India where Tier II and III
Rising cost of infrastructure (real estates
cities grew at trickle down effect,
and basic amenities) can pose a threat if
not adequately balanced with value addition there it's happening simultaneously.
and service The revenue for IT software and
The revenue for IT software service was just over $12 billion
was $32 billion in 2006.
in 2006.

Appreciating Rupee is cause of concern Undervalued Chinese Yuan, (because

as it makes Indian export less competitive of fixed rate/pegged currency regime)
in global market gives Chinese export an upper hand
in global market.

1371
 Globalization Opportunities and Challenges

The IT software and service sector accounted The IT software and servica
for 4.8% of India's GDP in 2005-06.
accounted for just about 0.5 %sector
China's GDP in of
India's IT industry is prominently 2006
China's IT industry growth is
export-led. fuelled
by domestic market
About 1.6 million professional are
China employs an demand.
employed in Indian IT industry.
India's strength includes scalability
estimated 0.5
million IT professionals.
China's strength
and global recognition.
includes strong
government support, quality of
physical infrastructure and
(Source: Data compiled by author)
connectivity.

Bottleneck in Education System

The Indian education
system needs to be
expanded rapidly at all levels. A
expansion of the education system is
at the necessary quick
secondary and collegiate levels. Easing theto cater to much larger numbers
investment as well as a radical reform of supply constraint requires more
and improper education is national education
ultimate system.
quantity issues of human capital. Incause of wage inflation caused by Inadequate
496 colleges. Now, 1947-48, India had just 20
India is having more
quality and
universities. According to than 17,500 universities and
report
of colleges, but only about 350
number of National Knowledge
manifold increase
universities from theCommission, India needs
in the
to at least 1,500
universities by 2015. present 350 universities
Emerging challenges for Indian IT and ITES
sector are summarized
Box I: in Box-I.
Emerging Challenges for Indian IT
and ITES Sector
Quick appreciation of
rupee against US dollar in
shorter time.
a
Rising cost of
infrastructure, basic
adequately balanced with value amenities and salaries can
addition. pose a threat if not
Competition from other emerging IT
Singapore,Malaysia, Mexico, The Czech
savvy countries viz.
China, Ireland, Israel,
Wage inflation caused by Republic, Poland, The
Philippines and Canada.
quality and quantity issues
High attrition rate in of human capital.
software firms.
Slow down in
US economy.
Backlash in US and
Europe over
outsourcing issues.
Policy of Visa
2004 fiscal availability and quota restrictions
Visas in the (H1B/B1)
year, the number by U.S.
of H1
U.S. has been Beginning with the
to 65,000 per year.
reduced from 165,000
(Source: Data
compiled by author)

[38
 Indian IT& ITES Sector: Redefining Strategies in Era of Appreciating Rupee

INDIAN ITAND ITES SECTOR: EMERGING STRATEGIES IN ERA OF APPRECIATING

RUPEE
Indian Software firms have also tried to expand their customer base beyond USA
to mitigate impact of weak US dollar. To save margins and cut the costs, many
firms have cut down their bench strengths to enhance employee utilization levels.
Every 1% increase in employee utilization increases margin by 50 basis points. IT
firms have started hiring more fresher compared to experienced staff and also
reduced level of hiring by going slow on hiring plans. Many firms have started
hiring science graduates to reduce wage cost and attrition rate. By special training
program offered by software firms these graduates are made employable in software
firms there by reducing wage cost to as much as 40 perecent. In order to overcome
the vast shortages of skilled men power and high cost of real estates, the industry
should look towards expanding into the many small town and Tier II/AII cities.
The government must facilitate this by making necessary improvements in providing
connectivity to this area. Firms are executing plans to restore profitability by
increasing productivity. This increase in productivity can be achieved in various
ways: use of more efficient practices and firm-specific training to impart technical
and programming skills for non-qualified or semi-qualified staff.

IT firms need to automate several managerial tasks to replace some part of costly
and scarce middle management. This includes standardization of sales process,
large deal management, account management etc. IT firms are also addressing the
margin issue through productivity improvements using automated tools and moving
more work offshore to India. Various strategic options available to cope up with
negative impact of appreciating rupee are listed in Box-II.

Box II: Strategic Options for Indian IT and ITES Firms

Software firms should systemaiically hedge accounts receivable against their currency
risk. As they are earning in dollars while spending in rupees, any adverse impact of
foreign currency fluctuation will negatively affect profitability margin.
They should enter in rupee contract instead of dollar contract whenever possible.
Enter the export contract for range of rupee-dollar exchange rates instead of fixed band.
Invoice their export receipts in different currencies rather than only in dollar.
Increase proportion of business being invoiced in Euro terms.
Link employee variable incentives with
exchange rate.
Enter new contract with higher
billing rate and revise existing contracts if possible.
Use currency swap
when currency depreciates more than expected.
Introduce proper risk management system to manage currency risk..
Reduce US dependence by exploring Eastern Europe and Germany.
Effectively manage quality & quantity issues of human capital.
Reduce overall operation cost and wage cost (15-20 %) by shifting to smaller Tier II
and Tier III cities.

[39
Globalization Opportunities and Challenges

Increase the employee utilization/productivity by reducing bench size.

Focus more on code reusability, by building a rep0sitory of software
componenta (nnd
and modules) that can be reused in projects-there by reducing cost and code
time
Off shoring to upcoming markets nearer to their US and European clients to cut coet
Move up in software value
ladder by focusing more on solution than services,
Focus more on domestic software market.
(Source: Compiled by author)

DOMESTIC MARKET SCENARI0: EMERGING

The US market's share in India's OPPORTUNITIESs
software and services exports is
around 67%, while Europe accounts
for 25% of Indian fairly high, at
of dependence on a single geographical location exports. Such a large degree
software sector. D'Costa (2002) spells high risk for the Indian
rightly criticized
dependenoe on exports, arguing that international the software industry's much
commercially lucrative, discouraged firms from outsourcing of software, though
home because "excessive doing more complex
vibrant domestic and dependence on
outsourcing limits the synergy
projects at
(1.5 %) and IT usage inforeign markets". The reason for
India is due to the absence of poor computer penetration
between
languages. In contrast, China has software in all the 22 Indian
for export but for its developed most of its software in
domestic market, whose size is
software in local
languages will about $35 billion. Mandarin,
By
not
feel and reach of IT boost
at grass root
domestic market of software
and
developing
also
level of nation. increase
Domestic demand can be
balancing the risky foreignseen as a
sales,
catalyst of a healthy national software
and
domestic market is set to providing much needed working industry,
transportation, grow at healthy capital. The
pace with verticals like
India Ltd (SBI) retail, hospitality
and Indian
and telecom
being key drivers. State logistics,
infrastructure. Indian Railways are planning to invest Bank of
Railways is $1 billion each on I'T
integrateimpementing
at cost of $1
billion to ERP (Enterprise
human resources. its business Resource Planning)
functions
According to research firm Frost & of finance, logistics and
enterprises such asthe Sullivan, government sector
(ONGC), Bharat Sanchar
Ministry of Finance, Oil and
nearly $3 billion this Nigam Ltd (BSNL) and Natural Gas Corp. Ltd
size of the year on
buying new software, Indian Railways will spend
ERP
user base for theproject
for Indian hardware and services.
ERP Railway will be around
software, when ready, is $1 billion. The The
This will make it one of the
biggest ERP expected to be around 1.6expected
milion.
The total size of
the Indian implementations in the world.
segment has been led domestic
market is US $16
ground. India developedbya MNCs, however Indian billion. Traditionally
this
spite of having weak strong software firms are
domestic industry gradually gainin
that the domestic economy, demand for software. relying on
foreign
businesses, began seeking whether it be
It was only in the demand
late 19s
n
larger and government
more ministries or Indian
sophisticated software systems. Inaa
(40)
 Indian IT & ITES Sector: Redefining Strategies in Era of Appreciating Rupee

to E-enable government systems. Domestic

government is making major initiative
Plan under which
market will also get boost from the National E-Governance
several big E-governance projects will be launched by government. This has expanded
tremendous
the domestic market for IT and IT-enabled services. India is having
market is forecasted
potential for domestic growth of software. The Indian domestic
to grow rapidly at a rate of 25%, based on a rollout
of E-governance, initiatives
and
and automation of key sectors such as retail, healthcare, transportation
manufacturing among others.

ITES INDUSTRY
STRATEGIC DECISION MODEL FOR INDIAN IT AND
attrition rate, increased competition etc. put
High wages, rising rupee, high
Indian software industry. Situation of
tremendous pressure on performance of
in delivery of final products and services.
ample resources provides cost advantagesdiminished and become scare, the cost
When these r e s o u r c e s are gradually
maintain dominant position in software
competitiveness is getting reduced. To
market, Indian firms should move up from Quadrant-1 to Quadrant -3 as explained
in Dynamic Resource Based Model (Fig. II).

Sustainable Competitive Advantage H

Specialization
To be avoided

Q-3
Q-4 Differentiation
Cost
Advantage
Advantage

Commoditization To be avoided

Q-1 Q-2

H Resource Position
(Source: Model developed by author)

Fig II: Dynamic Resource Based Model

creates domain specialization for long

In that scenario differentiation strategy
with lack of cost advantages or
term competitive advantages. Similarly
to maintain competitive advantages as
differentiation advantages it's difficult
These prospective effects are represented
explained by Quadrant-2 and Quadrant-4.
Resource Based Model as given in Fig.
II. As
four quadrants of Dynamic
by the value ladder from
the model, Indian firms have to move up in
suggested by and sustain
to enhance competitiveness
commoditization to specialization
competitive advantages.

[411
 Globalization Opportunities and Challenges

Commoditization
In the scenario when Resource Position is high and Cost Advantage is alan
as shown by quadrant Q-1, provides benefits of commoditization. Initiall8h
was having high amount of resources for software outsourcing hence ultim
tially Indhigh
resulted in to big cost nately
saving. This is because of commoditization of softwars
low margin service jobs were major source of software revenue. When resa
are plentiful it creates cost competitive advantages. India has the largest nurces
highly skilled English speaking software talent, IT && ITES professionais, andof
graduates. Till now India was enjoying this benefit of cost competency.
emerged as the 21st century's software powerhouse, offering many India hae
a global advantages a
sourcing hub, especially for IT and ITES. Indeed, India has already becoma
the world's preferred destination for IT software and
services. The
proposition that India has is that you get high quality expertise at lowunique value
India is the most sought after outsourcing destination for I'T costs. Today
and ITES, as it
60% cost savings without
having to make compromise on quality. Indian IT offers
has grown its revenues ten fold in the industry
past decade. Its contribution to GDP i
estimated to have grown from 1.2% to 5.4% in the
same period.

Specialization
In the scenario when
Differentiation Advantage is high and
is also high as shown
by quadrant Q-3 of Dynamic ResourceCompetitive
Based
Advantage
provides benefits of Specialization over a Model (Fig, I).
period time. Benefits of low cost
of
resource advantages diminish gradually and firm
providing service, software firms are inherently margins get reduced. While
mainly US; hence they need to balance it dependent on other economies
original ideas. The Indian IT and ITES by developing software products using
chain and expand their companies also need to climb
product and service ranges focused towards the value
processes and product development higher value
services. Indian firms should move
product specialization with high
of to niche
in diagram
(Fig. I). price-differentiated product explained below
as

Product Development H
Specialization
IT Consulting/ Strategy

Competitive
Advantages System Implementation

Package Implementation

Project Implementation
L
Coding/Programming Commoditization
L
Fig Il1: Software Value
Ladder

[42]
 Indlian IT & ITES Sector: Redefining Strategies in Era of Appreciating Rupee

Tndian software product development firms have been able to capture onlya
meager 0.2 % of the $180 billion global market for product development. This
tation will change if key stakeholders like industry, academia, research
institutions, industry nodal agency such as NASSCOM, entrepreneurs, venture
capitalists and government work hand in hand towards building a conducive
environment for product innovations. According to a study conducted jointly by
IIM-Bangalore and NASSCOM, the revenue potential of India's software product
is as high as $7 billion by 2010. Ultimately, in order to succeed as an industry,
Indian software firms need to specialize in the same domain/niche: in specific
services or products. For example, Israel specialized in data communications and
information security software. Those software firms that have not specialized are
less likely to succeed in long run and quickly loose competitive advantages since
they cannot compete simultaneously on all fronts.

CONCLUSION
India is a near synonym to IT & ITES outsourcing and is the most preferred
outsourcing destination. India's software exports is expected to grow an average
30% annually to theyear 2010 while the domestic software market is seen expanding
25% annually during the same period: Indian software sector has numerous
strengths and competitive advantages to continue work as growth catalysts and
maintain the position of global outsourcing hub. However with appreciating rupee,
increasing competition from emerging IT savvy countries and increase in raw
wages, margins are reducing for Indian IT firms. India needs to parallely develop
a product-oriented industry along with the service-oriented industry and climb the
value chain. Indian firms should also focus on short term as well as long term
strategic plan for addressing quantity and quality problems of workforce.

Instead of defending low-wage jobs, Indian IT firms should move to becoming

providers of high value, high margin services. The global IT and ITES industry
will account for US$ 2.33 trillion in 2007. There is still enough headroom for future
growth as only 8% of the world export market has been tapped to date by India.
As outsourcing is considered to be more of a necessity to cut costs in today's
globalized environment, there is plenty of room for the Indian 1T and ITES
ndustry to grow, given the immense and untapped potential. There is huge
potential for developing domestic software market. This paper also focuses on
potential of domestic software market. By catering domestic demand, too much
dependence on US market will also come down. Paper discusses various strategic
options available in era of appreciating rupee and provides strategic model for
effective solution.

1431
 Globalization Opportunities and Challenges

ANNEXURE-I
Performance of Four Largest Indian IT Firms
against BSE
Sensex
+60% TATA CONSULTANCY SERV LT
+40 as of 30-Nov-2007
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 Indian IT & ITES Sector: Redefining Strategies in Era of Appreciating Rupee

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