India losing its outsourcing luster?

India, is starting to lose its luster as an outsourcing post, thanks to a severe talent shortage and increasing competition for skilled IT professionals. That's why more than a few outsourcers are now looking elsewhere--including Vietnam, Russia and Mexico--for operation centers. Increasing salary levels are prompting the big outsourcing players to expand their horizons within India as well--moving away from the tech hub formerly known as Bangalore.

For more on the outsourcing issues in play:
- read the report [1] at BusinessWeek

Related Article: How outsourcing impacts defense systems. Article [2]