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The Coming Death of Indian Outsourcing?

The forbes article is a steaming pile of ...

Most people commenting here miss one crucial point, Engineering services will move to a place that has engineers !

Afterall, Boeing does not build/design planes in China/India simply because a Chinese/Indian aeronautics engineer costs 5 times less than his American counterpart. They build planes in the US inspite of the high cost of American aeronautics engineers because the US is the one of the few places in the whole world where they can source a substantial number of high quality Aeronautics engineers at a price point that makes business sense.

India is perhaps the only country in the whole world thats churning out decent quality graduates in Information Tech. For e.g. In my masters class in a top 30 US university, there were only 5-6 Americans out of a total of 60, the rest were Indians, Chinese and a sprinkling of Eastern Europeans. And because this churning has gone on for a while, India has an OK number of technology workers starting from the most raw to the CEO level.

Lastly, people talk about wage increases as if they are independent of the laws of supply and demand :-D Just because wages rose 15% year on year, doesnt mean they will continue that trend. I was working in India from 2000-2003, and we did see wage cuts and layoffs. In fact, this is already happening in India, with TCS slashing wages across the board.

So much for Forbes and people who claim to understand demand and supply..