I had also heard that many companies were moving contracts out of India due to the inevitable rise in cost and the existence of other regions willing to work for less. I've no clue how prevalent that is, though. It makes sense and should have been expected. Once a region handles anything (IT, manufacturing, whatever) for awhile, they get more experienced and skilled and start demanding higher rates, so if the low cost was the attraction in the first place, they eventually price themselves out. It is good to hear that India is responding in the right way, by forging their own path rather than relying upon contracts from foreign business. I look forward to see what develops personally (as a US developer)!