But the problem gets distorted when we see that US business are getting more thrifty, fight the raise of every cent we ask for and the work contract rates are falling ever lower. While a 100 $ per hour rate for a skilled developer was generally given a few months back, now the per hour rate is coming down and soon we will see rates of 40 to 60$ per hour.

So what does this mean? Well, overseas clients are weighing in the benefits of initiating projects, reducing the onsite and off shore teams and reducing the number of billable resources. In effect, these companies are asking for the same but paying less.

So Indian companies send lesser people for client visits, reduce onsite teams, go slow on recruitment, lay off employees and then the remaining employees work harder and take on more work and productivity increases.

(to be continued)