Indian currency Rupee's unprecedented rise against US Dollars has burnt fingers of not only the small time exporters but also all the IT and BPO players who charge clients with dollar and make salary payments as Rupee. Since Rupee has risen substantially against Dollar over past eleven months, BPOs have to divest more dollars to pay the same salary amount in Rupee.
Kiran Karnik, president, Nasscom says, "It's a difficult time for Indian outsourcers as they are already struggling with rising staff salaries." 
the rupee appreciation would have a multi-fold ramification for IT/ITES industry, especially once the ‘tax holiday' is over in 2009. Therefore, it's critical for enterprises to maintain and grow their margins through innovative measures, intelligent hedging mechanisms and smart deployment of manpower. Source
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