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AFP: Reverse outsourcing takes off as rising costs hit Indian IT firms

Hate to say it but "I told you so"..... is a correction around the corner ? It may not be a bad idea for the Indian IT industry and brand as a whole.

Alternatively its being predicted that as more biggies chip in to improve the supply side, salaries will get sanitized and the spiralling growth in costs will steady, if not reverse.

One way or the other, our Hondas and Hyundais - fine cars in their own right - are beginning to ask for Lexus, Merc and Porsche level premiums. That always comes at the cost of sustainable volumes. For a smaller segment, higher end, niche work and greater levels of productivity can justify increases, but the spiral in last year and a half has not necessarily been accompanied by these factors, but is purely a function of demand. Beyond a certain mark, the cost is high enough such that the pain of managing language issues and even a slightly lesser trained workforce (given the headstart India has now) is worth it.

How can these factors be effected ? And how can a larger pool of industry ready grads be enabled to improve the supply side of things ?

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