Indian HR Outsourcing Needs Pricing ReEvaluation

HR outsourcing companies in India need to seriously reevaluate their prices for the current and future contracts. This comes in light of the appreciating Indian Rupee vs. the US Dollar. The current exchange rate for $1 is fluctuating between 40 to 41 Indian Rupees which is approximately a 10 percent drop in US Dollar against the Rupee when compared to data from the past 6 months. There is already an impact on the earnings of Indian outsourcing companies in general due to the comparison. The impact is not only limited to HRO companies but also to every company that is dependent on US contracts. The current average pricing cost per employee per year is $677 for an HR outsourcing contract. This information comes from EquaTerra Research. Indian HRO companies will need to take a look at this pricing structure and compare their current and any future prices before negotiating with buyers.
Of course there is always two sides to a story. Indian HRO companies are also experiencing talent shortage currently and higher wage costs which are also contributing factors for a much needed reevaluation of their pricing ranges.