Costs are surging in the prime cities in India, as property values and rentals rise and wages increase, at an annual pace of more than 15 %.

Outsourcing firms are feeling the pinch from appreciating rupee, which reduces dollar-billed earnings. They are having to cut costs by expanding to less expensive locations.

India’s outsourcing companies have thrived with contracts from companies in the US and Europe.  This tapped the country’s low costs and large employee pool.  It has included jobs ranging from inbound call center staff to risk management and financial analysis.

About 50 billion dollars in revenue was logged last year by the entire information technology industry, which also includes software giants.