"In what appears to be the first round of renegotiating their outsourcing contracts after a slower economic growth impacted their business, customers such as Best Buy, Visa and Conseco are seeking significant rate cuts from their Indian suppliers."
The article then cites cuts in the range of 3 to 7%.
That's all?
Brace yourself for X times that as companies argue the rupee has depreciated (so the firms make more in dollars), the India labor market has cooled off substantially, and much of the work in a recession is sustaining, not enhancing. Add to that at least some nervousness about India about the recent attacks in Mumbai, and more rollbacks are going to be expected.
