India, the destination of choice for American tech companies looking for sophisticated but cheap labor, is beginning to lose its appeal, the Wall Street Journal reports. Rising pay scales are making it too expensive to justify the complications of globalizing. Now some are outsourcing their outsourcing to slower climes like Vietnam and even Poland.
Small firms have been the first to turn away from the subcontinent; shifting hiring back to the US. But the behemoths are slowly following—Intel is putting the brakes on growth at its Bangalore outpost. "The wage inflation rate for engineers in India is four times what it is here," Intel's CEO says.