India IT job market is hot - But for how long?

Booming economy, bounty of jobs, sky rocketing salaries, ballooning aspirations - India IT job market cannot get hotter than this. You talk to Engineers still a year or two from getting the degree in hand and they'll tell you the number of job offers that they have and the package that they are being offered. NRI's who are slogging their way away from India market wonder if flying home is a better option for them.

The idea of looking towards swadesh is very natural - you be close to roots and still make or at least save as much as you would in a land oceans away from home. But the growing salaries and not major breakthroughs in improving the underlying infrastructure force me to question the life of the trend. The salaries are growing almost at an unrealistic rates. IT majors are already exploring setting up bases in countries where labor is cheaper. It won't be far when the jobs stop adding up in India - if not moving out of there. How long can businesses afford growing expectations? How long can they stop the attrition by offering fatter salaries? Ultimately the reality, the bottom line, has to strike. And it won't be businesses that will end up paying but unfortunately the job seekers themselves.

I have been reading about a lot of silicon valley startups that pulled out of Bangalore realizing that getting the work done in India was actually costing them much more. Is this a sign that the correction is around the corner? Gladoo.com, the India job search engine, also talks about the perils of rising salaries in India in its Gladoo Blog. I guess, in the globalized economy we are bound to see the shifts in the trend. Today, it's India and China. Tomorrow, it may be Phillipines, Vietnam, or Mexico - who knows. Especially, the non-knowledge based jobs will be moving from one center to another looking for stabilization.