Mind the (social) gap

A recent survey points to a 17% increase in pay in 2007 and in 2006 there was a 14% increase in pay . Hey who doesn't love a pay rise ? The problem is the pay rise is not uniform across all the industries . Most of the pay rise is in IT and ITES. This creates a disparity in social/financial status of people in the society .

What is the impact? This creates a wider gap between the rich and the poor. There is flight of talent from other industries to the lucrative IT and ITES companies. Inflation moves higher because these people throw money at everything causing problems for the poor people in the society. If there is a fall in the profits of IT and ITES industry, there can be a pay cut across all the companies and I don't think this newly affluent crowd can handle it.

IT & ITES are feeling the pain of the rising rupee. The govt. should not bail this industry out by manipulating the exchange rate in the near term. This being said,we should let the market even out the disparity .This will help cool down the IT industry and help even out the disparity cause