A recent article in The Economist on June 1st 2011 provided some interesting questions about the business of outsourcing in India and other countries. Here is an excerpt from the article.

“Yet there is a slight whiff of a mid-life crisis. So far this year both Infosys and Wipro, two of India’s “big three” IT firms, have given guidance for profits that has disappointed analysts. Both are restructuring their operations and have had turbulence at the top. Infosys muddled the transfer of power among its founders. Wipro, a firm still controlled by its long-time leader, whose villa can be spotted through a forest glade next to its headquarters, lost its joint-chief executives. Only the largest, Mumbai-based TCS, is firing on all cylinders.”

We have had conversations with a number of US companies who are rethinking their outsourcing strategies. With rising labor costs and a desire to support “Made in America” the move is definitely starting. What are your thoughts?

What’s the future of outsourcing in India?  Is there a place for outsourcing abroad give rising costs?  Have countries like India outlived their turn in the cycle and with rising labor costs are they becoming obsolete?