Outsourcing may be coming to an end

As we have been hearing, costs among the outsourcing companies have been going up for the last couple of years. Competition has increased wages among outsourcing companies across the board.

Now Nishant Sivakumar in The Code Project:Finally something that might kill outsourcing brings up what will most likely bring Outsourcing to an end. When Outsourcing began the exchange rate was about 47 rupees to a U.S. dollar, today the exchange rate is 40 rupees to a U.S. dollar, so if trends continue even the stupidest MBA will figure out that there isn't the money in outsourcing that there was supposed to be.

The exchange rate coupled with rising expenses is sure to but the squeeze on the outsourcing companies and their customers. Thanks Nish for pointing out the obvious.