"Yet India's benchmark Sensitive index, or Sensex, has dropped by 20% in the past month as global investors have fled emerging-market stocks. And the outsourcing sector is now plagued by concerns about rising wages. Entry-level pay at tech and outsourcing companies climbed by as much as 13% annually from 2000 to 2004, while salaries for midlevel managers jumped 30% a year during the same period, to a median of $31,131, according to McKinsey and Nasscom, India's software industry association." (||{1}||) I've always felt that the fear of outsourcing was overblown for jobs requiring creative and motivated people. The reason is simple, good people are hard to find and in the long run their wages go up even in India.