I think what Raj explained is the ground reality. I've been working in UK and seen positive perception on outsourcing from share holders, VCs and Hedge Fund managers. Companies who have already outsourced operations (even partially) have gained a competitive edge and are relatively performing well. Other hand, those who haven't, are pressurised to follow this tried and tested route.
Yes, outsourcing will require lot of ground work to be done and may work negatively if not properly planned. However, given the market perception, I believe India is going to benefit for some more time to come.
Meantime, we need to differentiate ourselves from other low cost countries purely on quality and consistency.
