Since rupee value increasing will it affect software engineers in india?

Question

Since rupee value increasing will it affect software engineers in india?

Answer 1

When the value of the rupee increases with respect to other currencies, software exporters make less profits (because their dollar or euro profits earn less rupees). Depending on the quantum of export profits and the ability of their finance department in currency hedging, the actual profits may or may not be greatly affected.

The larger exporters are usually able to contain currency fluctuations better - but the smaller ones take a bigger hit. So if you work for a small exporter, chances are that your salary increments may get reduced or - horror of horrors - you may lose your job.

A company like 3i Infotech has equal amounts of earnings from exports and domestic business. They will hurt less. TCS has substantial domestic business - much more than Infosys. So they will fare better if the rupee rises.