The global economic uncertainty and the slide in the Rupee value against the US dollar are considered to have cast their shadow on the country’s economy and businesses.
At least two segments are bullish on the positive impact of the global developments in their operations. Thanks to the continuing slide of the Indian currency against dollar, currency trading firms have registered a significant increase in the volumes of their business while the uncertainty is said to have resulted in dip in the attrition levels in IT, ITeS and BPO firms to a record low.
Contrary to perception that the Rupee slide would result in slowdown in payments from abroad, currency transfer and exchange firm, UAE Exchange has registered significant increase in the number of inward remittances with transactions in excess of 40,000 a month from the State. UAE Exchange regional head N. Gopi said people feel fall in the rupee value as the right time to send money as the beneficiaries will get extra value for the amount sent to them. Coupled with the global developments is the Ramzan remittances from Middle East in favour of beneficiaries particularly in Hyderabad, Karimnagar, Nizamabad, Kadapa and other districts which have Muslim population of over 30 per cent. He said that though the firm had competition from Western Union in other geographies, it was leading in remittances from Middle East. On the other hand, a survey conducted by the apex industry body, Associated Chamber of Commerce and Industry, revealed that attrition levels during the first six months of the calendar year were pegged between 15 per cent and 20 per cent against the 55 per cent during the corresponding period last year. Uncertain global economic environment together with cross currency fluctuation compelled the employees to adopt a wait and watch policy. Hyderabad, reputed for housing sizeable chunk of the ITeS and BPO firms, was among the five other locations where the survey was conducted. Assocham secretary general D.S. Rawat said employees were wary of switching over jobs due to apprehensions that economic slowdown was likely to continue for some more time.
Attrition level is at minimum of about five per cent among employees with over 10 years experience while it was about 7-10 per cent among those with 5-10 years experience. Young and entry level employees contributed the maximum of 15 to 20 per cent attrition among the less than five years experience category as youngsters preferred switching over for hefty pay packages ahead of schedule, the survey said.
The continuing slide of rupee against dollar has helped currency trading firms, writes