Market resarch getting outsourced
I don't know how detailed the report is and what kind of primary research these guys have conducted. But any one with basic economic knowledge could have figured out the conclusion. You have a basic differences in cost which US giants can not compensate for even with setting up shops in lower-wage countries, like India, China, or Philippines, as their high-margin overhead remains in US dollars. I believe the differentiation is in the level of service, or perceived service, which continues to narrow.
The research also throws up some interesting facts. Eighty percent of all outsourcing deals fail in the end. Once the initial excitement of the first two years wears off, the performance of the contract in the third and fourth years becomes crucial. The researchers say that while IT companies pull their best staff off a contract in the third and fourth years and re-assign them, Indian companies are better positioned to handle the transformation and train the new team of workers. Where is Ross Perot when you need him?