Three Myths about Wage Inflation in Indian IT Services

One can hardly mention global IT outsourcing these days without hearing references to “wage inflation” in India and the fast-shrinking value of labor arbitrage from offshore outsourcing. These dramatic, seemingly logical, arguments are used to support an analysis that predicts that cost savings will soon be too small for offshore outsourcing to be viable.  However, this deeply flawed analysis is based on three myths:

In future posts, we explain why each of these myths are false and how outsourcing professionals can leverage the truth to improve decision making and negotiations.

Analysis and Opinions by Matthew Sullivan and Cindy Carpenter.

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