A scarcity premium on tech talent may work against India

Pune: One year ago, a US-based firm made plans to move its technology development work to India, buoyed by the easy availability of highly skilled tech workers and a 30% cost saving in hiring. However, by the time it was ready to start recruiting last month, tech salaries had risen significantly, all but erasing the projected cost reduction that had made the proposition so attractive. This company’s case is not unique. Several others who are