As per a latest study it is being claimed that the outsourcing advantages offered by India and China are going to vanish in the next two decades owing to increasing salaries and other costs in these countries. The study which was conducted by A.T. Kearney states that inflation is eating into the benefits being offered and over a period of time these advantages would dry up.
Average salaries for programmers in China, India and Eastern Europe have shot up between twenty to forty percent in the year 2006 as compared to a modest increase of five to ten percent in U.S. It has now become necessary that companies making global location decisions should target short term considerations and more on long term projections of talent supply and operating conditions. It now looks that this message might be lost in the whole process.
Via informationweek
