Given the finite size of the markets they are expanding into (Europe and North America f0r the most part), even if they outsourced every single developed world tech job, that would not sustain the double digit growth they have been enjoying up until now. The best cost savings you can hope for by offshoring is about 30%, when you consider the total cost of ownership (communication and management overhead etc). Wage arbitrage can be very mis-leading in this regard. This issue is compounded by the fact that wage levels in India are rising fast. Finally it's hard to find really good software engineers anywhere in the world and India is no exception. The really good ones don't come cheap, but the value they deliver offsets the higher costs many times over.
So goes the world, so goes India. The economy continues to suffer and the destination hot spot will eventually come to an end. India will lose its appeal as a destination, as another new hot spot will take its place. This is nothing new. The same thing happened to Dubai a few years ago, and not even the "Sex and the City" movie could change that.
We need to find ways to put pressure on behemoth corporations that choose to offshore jobs. The fact is that if we produce nothing and do not perform administrative tasks domestically, there will continue to be negative job growth. The problem is that large corporations face no repercussions for conducting business unethically.
Really my opinion on this question all comes down to semantics. Since I believe that everything must end, and since "red hot" trends are by their nature always short-lived, I therefore obviously believe that India's status as an offshoring destination will also slow down eventually and ultimately come to an end.
India is currently attractive for outsourcing, as it has relatively low wages and operating costs. As India continues to develop economically, however, wages and costs will rise. This will make India less of a destination for outsourcing and businesses, and corporations will most likely move to a less developed country for their cheap labor needs.
Because there are only so many people in India, and because the high demand for off-shoring has increased over the years, it only makes sense that the use of this country for these needs will slow down and end. As more and more job opportunities come to India, the population will be able to pick and choose which are better, causing a price war which is no different than any other country.
India has a billion-person workforce that is fluent in English and willing to work almost any job, at any price (often with a fair amount of quality). Especially in this poor economy, where companies are trying to maximize and maintain profit, India will continue to be a hot place to offshore employment.
India's status as a hot spot in the business world is due to cheaper wages. This is the reason why American jobs have been transferred there. But, as with any country that sees an explosion in business, eventually the citizens of India will want more pay, benefits, and retirement. This will effectively end its status as an alternate location for job placement. That's the way capitalism works. It always has, and always will. China is a prime example of a country starting towards the downward slide of that scenario.
Many Americans are upset about jobs being outsourced to developing countries, even though they enjoy the cheap products that they could not have without this practice. As they put more pressure on companies to keep jobs in the US, it may start to outweigh the cost advantage of production elsewhere. That cost advantage is also going to decrease, as Indian workers get used to a better standard of living, and eventually begin to demand higher pay and benefits.
India has a large high skilled labour workforce. Indians are habituated to working hard and adding new skills to their skill-set unlike some developed countries where they feel entitled to jobs, free training etc..
This basic difference in culture, attitude makes India and countries like her a favorable destination.
With time, it may slow down since wages in India may also rise drastically if not very comparable to US wages.
There are millions of educated, English-speaking people in India who are able and willing to take jobs that were traditionally American. The cost of living is considerably lower in India, and qualified people are happy to take jobs at a lower wage, more than equivalent people do in the States. I do not think that our standards will lower and theirs will raise significantly in the near future.
India is the biggest democratic population in the world, thus making it friendly to the west, unlike China which the west sees as a threat. India has a very young population. So long as the west finds someone to do things for cheap, there will be growth for India. So long as no one sees India as a threat, then it will have a peaceful place with the world powers.
Businesses are designed for profit. In order to be profitable, a business must be as efficient as possible. India has a technically-skilled work force with a strong background in math and science. Indian people can provide expertise to overseas businesses. In addition, Indian people are likely to speak English, a language of trade. Indian people are also less expensive, due to a favorable exchange rate and differences in wages.
I believe that India will continue to be a place that needs jobs and as such will continue to offer cheap labor alternatives. The cost of employing U.S. workers makes India a cheaper option for some types of manufacturing. The population of India will continue this trend into the future and so will the cost of hiring and building in America.
First, there is the fact that India has been engaged in business for many years and the amount of experienced people who are able to do the work well has only increased. Other countries still have an experience gap which is difficult for them to close.
India also has an IT infrastructure which is better than in most other countries and this means that the speed and quality of the work Indians do is going to be better than that found in other developing nations which are presently used for off-shore calls, etc.
Then you also have the fact that the majority of Indians have had to learn English which is still one of the most popular languages in the world and that their school system is very rigorous and demanding... And the Government of India is doing its best to encourage more technical education which will only increase India's ability to meet the needs of its off shore business employers.
I don't think off-shoring to India is going to slow down any time soon. People there will work for far less than people here, and even people here who work sites like Mechanical Turk are getting their 'jobs' taken by workers in India. As long as people will undercut the wages of the US workers, greed will prevail and the jobs will go there.