My Indian Buddy tells me that Indian outsourcing company’s are having a hard time finding qualified IT staff. And that the search is draining staff from all the other tech areas of India. That includes Science, the Universities, and Hospitals. Any one who can do IT is being hired away with tempting salaries.
On another front, while the Indians are worried about the lose of Manufacturing jobs to China, that don’t appear to be very worried about IT jobs moving to China. As they believe that Superior english skills in India will give them an edge.