I am going to present a paper on " How IT industry is cope up with the diminishing dollor".Can any body guide?

Answer 1

since the yuan is pegged to the dollar, production costs in China and the US are not significantly affected by relative value changes in the USD. China and the US are the world's largest producers of IT hardware.

In the short term, this means that profit margins on sales in countries with appreciating currencies will increase while cost pressures will, over a longer period, tend to move production out of europe and toward either China or the US.

As to software and services, the (Indian) rupee is appreciating, so the cost advantage producers there enjoy is becoming less valuable. While this will not stop the movement of soft jobs to India, it will lessen the forces impeling that move -- which is likely a good thing since IT grads in India aren't nearly as readily available as they used to be. [A further increase in IT schooling volume will increase supply in the next few years, which Indian soft IT companies will need in order to be able to find larger numbers of qualified employees.]

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just a 1st pass ... someone please add

Answer 2

A lot of tech companies do 50% or more of their sales overseas including Cisco, Intel, IBM, HP and their sales shouldn't be as adverseley affected as it would if almost all their sales were domestic. This was in an article in this months SmartMoney magazine.

http://www.smartmoney.com/mag/index.cfm?story=december2007-techstocks