China looking to compete on Indian stronghold. Rupee / Yuan
India, which has emerged as the back-office of the world in recent years, is expected to face stiff competition from countries like China, Malaysia and Singapore even as the global outsourcing industry is pegged to reach a market size of $1,430 billion by 2009-end.
INDIAN GOLD / RUPEE
A survey conducted by global consultancy firm Frost and Sullivan has ranked India as the top destination for shared services and outsourcing (SSO) across various verticals. The country is followed by China, Ireland, Singapore, Malaysia, Mexico, Czech Republic, Poland, the Philippines and Canada.
Low labour costs and abundant supply of skilled manpower are the key factors behind India's sustenance as the top outsourcing destination globally. Outsourcing sector in India is experiencing consolidation and SSO providers are moving up the value chain, expanding their onshore presence to strengthen global delivery capabilities, the report said.
But there is a threat from countries like China which is fast emerging as an attractive destination for outsourcing IT, research and development and procurement services, it added.
India's growth is beleaguered by factors like high attrition rates, poor infrastructure, rising wages and appreciation of rupee against US dollar, the report said.
"SSO is no longer just about cost arbitrage, instead SSO operators are adding value through their skill sets and competencies wherever they are located," Frost & Sullivan Vice-President Asia-Pacific (ICT Practice) Nitin Bhat said.
The study also forecasts the global SSO market will grow at a compound annual rate of 15 per cent to reach a market size of 1,430 billion dollars by end-2009.
Malaysia, which boasts of excellent infrastructure and low attrition rates, also makes for an ideal outsourcing hub, the Frost and Sullivan study said. The south-east nation is already a strong player in banking, financial services and insurance (BFSI), transportation and energy verticals.
Besides, companies such as Dell, Satyam and IBM have recently made outsourcing investments in Malaysia, making it a hub catering to the technology sector, it pointed out.
The study covered Fortune 500 and Forbes 2000 companies and was conducted across seven major industry verticals -- banking, financial services and insurance, technology/ICT, healthcare industry, transportation and logistics, energy, fast-moving consumer goods and media and entertainment.
A report by audit firm PricewaterhouseCoopers (PWC) has also said although India remains the most favoured destination for outsourcing, countries like Singapore were gaining favour.
A number of financial services companies, including Barclays and Credit Suisse have expanded their support operations with the Monetary Authority of Singapore actively promoting the country as a financial center.
Sesa Goa Ltd., India's biggest non- state iron ore exporter, said profit fell 11 percent, the first drop in three quarters, after the rupee's gain against the dollar eroded earnings.
Net income declined to 1.18 billion rupees ($29.3 million) in the three months ended June 30 from 1.33 billion rupees a year earlier, Managing Director P. Mukherjee said yesterday by phone from Goa, where the company is based. Sales climbed 3.6 percent to 4.54 billion rupees.
The currency's 9.7 percent gain against the dollar this year crimped earnings from sale of iron ore overseas. Sesa, which has agreed to be acquired by U.K.-based Vedanta Resources Plc, exports 93.5 percent of production to steelmakers in countries such as China and Japan.
"Service providers are gaining domain specific capabilities to move-up the value chain. This trend is expected to boost further consequence to decreasing cost arbitrage, increased competition, and the relentless search for value," Bhat said.
Rupee / US Dollar Forex Currency News, Gold in India, and The Sensex stock market index on the Bombay Stock Exchange (BSE). Euro / Rupee and Yen / Rupee.
The dollar gained strength against the rupee in inter-bank market over the week on Friday, gaining two paisas.
The dollar closed at Rs 60.38 at buying and Rs 60.43 at selling as compared to last week closing of Rs 60.36, gaining two paisas.
The pound sterling strengthened against the rupee as it closed at Rs 123.96 at buying and Rs 124.16 at selling as against Rs 122.72 at buying last Friday, gaining Rs 1.24. The euro weakened against the rupee as it closed at Rs 83.28 at buying and Rs 83.21 at selling as compared with Rs 82.03 at buying, losing Rs 1.18 over the week.
Open market: The dollar lost strength against the rupee in open market. It closed at Rs 60.97 at buying and Rs 61.02 at selling as compared with Rs 60.98 at buying of last week’s closing, losing one paisa.
The pound sterling also strengthened against the rupee as it closed at Rs 124.60 at buying and Rs 124.80 at selling as against Rs 123.25 at buying, gaining Rs 1.35. The euro gained strength against the rupee. It closed at Rs 83.70 at buying and Rs 83.90 at selling as against Rs 83.50 at buying, gaining 20 paisas.
The European single currency soared to a new record high against the dollar on Friday as the US currency continued to be undermined by housing market worries.
The euro fetched $1.3820 dollars from $1.3802 in New York late on Thursday, after trading as high as $1.3843. The pound rallied to a fresh 26-year high to $2.0546 after $2.0486 Thursday. The dollar also hit a six-week low against the yen of 120.85. It later stood at 121.26 yen, down from 121.99 yen on Thursday.
“With no economic data released today, the only thing that could rattle the currency markets was a reversal in US stocks,” said Kathy Lien at Forex Capital Markets. “Not only did a reversal actually occur, but bond yields also fell sharply, triggering major losses in the both the US dollar and carry trades,” a reference to borrowing at low rates in one currency to invest elsewhere for higher yields. Worries about problems in the US subprime mortgage sector — loans to homeowners with patchy credit histories — caused sharp falls on global equity markets on Friday
INDIAN GOLD / RUPEE
A survey conducted by global consultancy firm Frost and Sullivan has ranked India as the top destination for shared services and outsourcing (SSO) across various verticals. The country is followed by China, Ireland, Singapore, Malaysia, Mexico, Czech Republic, Poland, the Philippines and Canada.
Low labour costs and abundant supply of skilled manpower are the key factors behind India's sustenance as the top outsourcing destination globally. Outsourcing sector in India is experiencing consolidation and SSO providers are moving up the value chain, expanding their onshore presence to strengthen global delivery capabilities, the report said.
But there is a threat from countries like China which is fast emerging as an attractive destination for outsourcing IT, research and development and procurement services, it added.
India's growth is beleaguered by factors like high attrition rates, poor infrastructure, rising wages and appreciation of rupee against US dollar, the report said.
"SSO is no longer just about cost arbitrage, instead SSO operators are adding value through their skill sets and competencies wherever they are located," Frost & Sullivan Vice-President Asia-Pacific (ICT Practice) Nitin Bhat said.
The study also forecasts the global SSO market will grow at a compound annual rate of 15 per cent to reach a market size of 1,430 billion dollars by end-2009.
Malaysia, which boasts of excellent infrastructure and low attrition rates, also makes for an ideal outsourcing hub, the Frost and Sullivan study said. The south-east nation is already a strong player in banking, financial services and insurance (BFSI), transportation and energy verticals.
Besides, companies such as Dell, Satyam and IBM have recently made outsourcing investments in Malaysia, making it a hub catering to the technology sector, it pointed out.
The study covered Fortune 500 and Forbes 2000 companies and was conducted across seven major industry verticals -- banking, financial services and insurance, technology/ICT, healthcare industry, transportation and logistics, energy, fast-moving consumer goods and media and entertainment.
A report by audit firm PricewaterhouseCoopers (PWC) has also said although India remains the most favoured destination for outsourcing, countries like Singapore were gaining favour.
A number of financial services companies, including Barclays and Credit Suisse have expanded their support operations with the Monetary Authority of Singapore actively promoting the country as a financial center.
Sesa Goa Ltd., India's biggest non- state iron ore exporter, said profit fell 11 percent, the first drop in three quarters, after the rupee's gain against the dollar eroded earnings.
Net income declined to 1.18 billion rupees ($29.3 million) in the three months ended June 30 from 1.33 billion rupees a year earlier, Managing Director P. Mukherjee said yesterday by phone from Goa, where the company is based. Sales climbed 3.6 percent to 4.54 billion rupees.
The currency's 9.7 percent gain against the dollar this year crimped earnings from sale of iron ore overseas. Sesa, which has agreed to be acquired by U.K.-based Vedanta Resources Plc, exports 93.5 percent of production to steelmakers in countries such as China and Japan.
"Service providers are gaining domain specific capabilities to move-up the value chain. This trend is expected to boost further consequence to decreasing cost arbitrage, increased competition, and the relentless search for value," Bhat said.
Rupee / US Dollar Forex Currency News, Gold in India, and The Sensex stock market index on the Bombay Stock Exchange (BSE). Euro / Rupee and Yen / Rupee.
The dollar gained strength against the rupee in inter-bank market over the week on Friday, gaining two paisas.
The dollar closed at Rs 60.38 at buying and Rs 60.43 at selling as compared to last week closing of Rs 60.36, gaining two paisas.
The pound sterling strengthened against the rupee as it closed at Rs 123.96 at buying and Rs 124.16 at selling as against Rs 122.72 at buying last Friday, gaining Rs 1.24. The euro weakened against the rupee as it closed at Rs 83.28 at buying and Rs 83.21 at selling as compared with Rs 82.03 at buying, losing Rs 1.18 over the week.
Open market: The dollar lost strength against the rupee in open market. It closed at Rs 60.97 at buying and Rs 61.02 at selling as compared with Rs 60.98 at buying of last week’s closing, losing one paisa.
The pound sterling also strengthened against the rupee as it closed at Rs 124.60 at buying and Rs 124.80 at selling as against Rs 123.25 at buying, gaining Rs 1.35. The euro gained strength against the rupee. It closed at Rs 83.70 at buying and Rs 83.90 at selling as against Rs 83.50 at buying, gaining 20 paisas.
The European single currency soared to a new record high against the dollar on Friday as the US currency continued to be undermined by housing market worries.
The euro fetched $1.3820 dollars from $1.3802 in New York late on Thursday, after trading as high as $1.3843. The pound rallied to a fresh 26-year high to $2.0546 after $2.0486 Thursday. The dollar also hit a six-week low against the yen of 120.85. It later stood at 121.26 yen, down from 121.99 yen on Thursday.
“With no economic data released today, the only thing that could rattle the currency markets was a reversal in US stocks,” said Kathy Lien at Forex Capital Markets. “Not only did a reversal actually occur, but bond yields also fell sharply, triggering major losses in the both the US dollar and carry trades,” a reference to borrowing at low rates in one currency to invest elsewhere for higher yields. Worries about problems in the US subprime mortgage sector — loans to homeowners with patchy credit histories — caused sharp falls on global equity markets on Friday
Labels: currency, dollar, exhange rate, forex, gold, indian, rupee, stock market, wall street sensex
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