Rising wages, costs wipe gains for IT

Bengaluru: The rupee depreciating would ordinarily have been a big positive for the Indian IT industry and goods exporters, helping improve margins and competitiveness.

But this time, other developments have partially offset the advantage. For the IT sector, wage costs continue to rise, given the shortage of talent. And the dollar has strengthened against the pound and the euro, adversely impacting Indian IT companies’ dollar revenue (30-40% revenue comes from the UK and Europe).