Increasing salaries for IT workers in India could mean that India could price itself out of the offshore market. China and some Eastern European nations could pick up some of the business currently going to India.

But only if the Indian companies continue to use 'lower prices' as the reason for outsourcing. They need to have better reasons for US companies to continue to send work to India.

The news article quotes George Gilbert as saying "India's education system and culture foster risk-taking" which is complete opposite of what I think. I feel that the culture rewards stability and routine. I don't know where Gilbert gets his insight from.