Feels like Silicon Valley in late 90s - BusinessWeek and Silicon India write about it this week. I have written about it in past here, here and here.
Having said that, some firms (Western and Indian) will use the labor issue to seek significant offshore rate increases. Let's bear in mind their salaries and other benefits are still less than 20% of their billing rates, so even if compensation goes up 20%, the net effect is still only 4%.
