Executive Summary (This is a document excerpt)

India's advantage as an offshore location is fast eroding — its attractiveness takes a hit with each passing day. Apart from the fallout of known challenges like staffing costs, attrition, and infrastructure, a host of new issues — the falling dollar, unrealistic staff expectations and aspirations, project scalability, expected tax revisions, and real estate costs — are threatening the offshore story of low-cost and high-quality resources. But while many clients are disillusioned with the state of affairs in India, the lack of a scalable offshore alternative is keeping the Indian offshore business going, and even growing. To meet the challenges of this new dynamic, sourcing professionals need to reset expectations and make their internal buyers aware of related risks.

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