Market Insight

Indian Outsourcing Stocks: Beware The Stronger Rupee

It is not just the Rupee appreciation that is going to impact Indian outsourcing firms.

There are other issues too:

1. Rising wages and salaries in India
2. Severe shortage of skilled talent
3. High staff turnover
4. Competition from the other countries notably - Philippines, some parts of Eastern Europe
5. Rising cost of office space
6. Lack of infrastructure - you need to see the mess that Bangalore airport is. Others are no better either.
7. Last but not the least - growing political pressure in the USA especially from a Demorcat controlled congress