India’s offshore dominance on the wane because of rising salaries? Hell no, says/hopes/prays Marc Hebert, the VP of a Silicon Valley company that has a branch in India:

Some even speculate that rising salaries in India will erode the cost advantage over U.S. IT workers, ultimately returning offshore jobs to American soil. But that’s only one side of the story. To paraphrase Mark Twain, the reported death of Indian outsourcing is greatly exaggerated. The counterargument rests on two pillars: productivity and scale. Salaries may increase, but there are offsetting factors such as experience, infrastructure, high productivity levels and economies of scale to consider. Let me put it another way: The cost of doing information technology in India is falling, as the range and complexity of projects that can be offshored to India is increasing. [News.com]

News.com: The end of India’s offshore dominance?