Outsourcing continues to be a very viable option for large companies. For example, automotive companies are outsourcing more to companies like Wipro because they have the intellectual capital and cost structure that allows them to be more competitive. US dollar's strength to the Indian rupee continues to be a subject of concern. Bottom line... if the US dollar strengthens against the rupee (US dollar has remained flat against the rupee YTD despite its decline against the euro)it will benefit the Indian companies. Remember these companies are paid in US dollars and this translates into greate rupees and therefore profits. People appear confused about this fact and the US dollars impact on a foreign companies bottom line. Another factor to consider is the continued outsourcing by European companies to India. Outsourcing to India will grow and if these India companies avoid political strife, their share prices will climb. Also company executives from Wipro have a significant amount of personal and professional capital invested.
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