With rupee appreciating against dollar in recent times to stand at roughly Rs 54 levels, the Gujarat based Information Technology (IT) companies are hopeful it will augment export orders by 10-12 per cent. The industry is of the view that the rupee strengthening against dollar will attract more clients as business gets more viable for the latter.
"In last three years, foreign exchange had been fluctuating a lot. However, in the recent few months, there has been some consistency between rupee and dollar. This will attract more overseas clients for us. Plus, this could also mean 10 per cent higher realisation for us as well due to increased orders," said Rajan Vasa, CMD, Contech BPO Services Pvt. Ltd.
Add to that, with the IT companies hedging currencies well in advance, the industry is not worried of reduced export earnings due to rupee appreciation. "Now that almost all companies hedge currencies, rupee appreciation is not much of a worry. Also, rather than signing a single currency agreement with any client who is present in multiple countries, we now segment these agreements into local currencies. Hence, if a US-based client is present in South American and African, we will sign separate agreements in local currencies for these markets," said Jay Ruparel, co-founder of Azure Knowledge Corporation Pvt. Ltd.