There is a projected shortage of about 500,000 workers in the near future, whereas salary increases and other employee retention efforts are costing companies not only in functionality and competition, but also in operational margin.
Does it mean India is in danger of losing its edge? Not necessarily. A projected demand on workers usually means that the tide is turning your side. However, if this is not properly handled, then the country might endanger its stronghold on the outsourced business.
Well what about those of us who think that all this is anyway a sign of a badly shaped bubble? Well, I am one of them, and I still do think it is a bubble. Except maybe its growing big slowly...well who knows. Maybe time will prove us wrong!