According to independent experts and some India’s IT outsourcing leaders the wind of change is coming. They say India is not going to be world outsourcing leader as it used to be for the last years. The clue reason of that change is a price shift in India.

Most companies there have faced the tremendous increase of workforce costs in 2007 and it seems that it’s only the beginning. Some may notice a price growth in India’s real estate that influences outsourcing rates also. As a result many international companies may revise their outsourcing plans and try to find someone cheaper.

Low rates have always been one of the most attractive features of IT outsourcing to India. And now it seems they have gone.

 
The problem is multiplied by the dollar devaluation. Today India’s IT companies are using dollar rates. And as a result of devaluation they have to increase their rates but that doesn’t lead to profit growth. Financial Times experts say that the largest outsourcers like Infosys Technologies and Tata Consultancy Services have managed to keep their profit stable. Unfortunately the trend is not favorable for them.

You know the same problems arise here. The prices are going up here especially IT salaries. Does it mean that IT boom is over?

 
I hope, no. I believe that the main benefit of IT to outsourcing Eastern Europe is the quality of services we are providing here. The rates here are higher that China or India suggests but thanks to quality and business transparency we have our market share. And I believe that the trend is favorable to us