Sky is falling If the recent falling of IT stocks in BSE can be taken as an indication of the future to come, then things aren’t that bright for Indian IT sector as it used to be. An Article appeared on Times of India recently, discusses about the possible reasons of the under performance of the IT stocks. But if we were to look at it in a different perspective, the things are even bleak. In order to make up the trade deficit that US incurs, the value of dollar is being depreciated. If the trend is to continue it will lead to the strengthening of Indian Rupee which in turn will affect the export volume of India, whether it’s services or products. It was the Rupee pegged to the Dollar was the real champion of Indian economy. This was the reason why the companies chose off shoring, and the other attraction being cheap labor is now some what history. A recent A.T. Kearney study shows labor costs to run a call center in India have increased 11.5% in the last three years. Total compensation for a software project manager has increased by 8.7% in the same period. An India without its cheap labor and devaluated currency will no more be an attraction for the foreign investors as we have no uniqueness of the service or quality of the service to offer. Link= http://economictimes.indiatimes.com/articleshow/msid-1189401,curpg-1.cms