Now Pound starts depriciating against the value of INR

Just when you thought that the entire Dollar-Rupee value chaos had been refactored successfully, here comes another thorn in the flesh. After USD its the turn of British Pound to play havoc with INR. The value of Pound has depriciated by almost 5% against the INR in just a matter of few days. The Pound which was valued close to Rs.82 at the beginning of this quarter, slipped to Rs.77 in the month of March.

Its worth being noted that after the Dollar crisis, most IT companies were speeding up the process of penetrating the European market, specially UK. But now that the British Pound has also started playing games with the INR, the question that seems to be on everyone’s mind is “What next?” The good news however is that contrary to the British Pound, the Euro is appreciating in its value with reagrds to the INR. The value of Euro has appreciated from Rs.55 to Rs.63 in a matter of three months. Luckily for Cognizant, most of its European expansion plans at the moment are centred on Eastern Europe, where Euro is the traded currency.

However, this entire currency uncertainty, has brought to the forefront the need for an exceptionally innovative strategy that would somewhat decrease the inter-dependency of margins and currency. How long would we be able to market our USP of providing low-cost solutions? Ploys like presenting a company as the ultimate customer satisfaction ambit is fine, but definitely some radical work needs to be done on the financial operating model. Probably the organization which comes up with the most innovative financial model to counter-attack this problem would walk away with the honours in the next decade.