Fallout of weak rupee: Contract price revision looms over domestic IT firms

Domestic companies may pass on benefits of falling rupee to clients

As the Indian rupee touched a record low of 71 against US dollar, domestic IT service companies face the imminent threat of clients asking them for bigger discounts, especially for contracts coming up for renewal as well as for new ones up for bidding.

While experts don’t see a trend unlike previously when clients used to come back asking for pricing discounts for the existing engagements, the new contracts would see a significant competition among the IT vendors as they would look at passing on most of the benefits to the clients.

Rupee has depreciated around 3.8 per cent till