Want stable rupee to plan projects: NASSCOM

NEW DELHI, INDIA: Even as the rupee value continues to tumble, the ITes sector is keeping its fingers crossed on revenue while hoping for a stable rupee.

NASSCOM says that the major concern is the rupee volatality as instability in rupee hampers the project planning and execution.

Speaking to CIOL, Ameet Nivsarkar, vice president of NASSCOM, said that the major concern in the ITes industry is rupee volatality. “We want stable exchange rate as it has become difficult to plan any project,” he said.

“We have planned growth in terms of dollar and the frequency at which the rupee falls or goes up is a matter of worry,” Nivsarkar said. He, however, believes that some expenses are in dollars and it doesn’t add to the topline.

More than 70 per cent of the outsourcing business in India comes from the US. Earlier, the rupee had fallen to 52.73 on November 22. The continued rupee decline this year is worst among all falls during the past decade.

As per contractual terms, a majority of third-party vendors receive US dollars as their payouts from their parent process companies that have headquarters in the US.

The rupee value was 53.29 per US dollar on Tuesday.