An informal study conducted by India Daily, makes the case that the rates of growth in India and China will in only 5 years lead them to a level where western outsourcing to these nations is no longer a profitable option. With current rates of growth and per capita GDP progressing at much higher rates than that of western outsourcers, the costs of labor in India and China will approach that of western nations and limit the benefits of offshoring. India Daily Reports:
The oil price and cost of energy as a whole will be the most critical factor. Eighty percent of the dynamic non-deflationary part of World Economy will get distributed between India, China, Brazil and South Africa (with possible inclusion of Russia). The cost of getting services performed in India will almost equal that of doing the same in the West because of the cost of energy and much higher standard of living of the Indians and the Chinese in 2010.
Read More: Look into the crystal ball – Outsourcing from India in 2010

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