Yes ,
India is the destination global companies for cheaper labour.
Hence there has been a considerable increase of operations of global companies in india
Since company can maintain higher margins as compared to any other part of the world while maintaining their quality of service

Yes, Indian Employees are aware of the fact
Hence, in India we can see a large number of switch between companies every 2 to 3 years before individuals settle in a company for a longer period.

Moreover,
Indian companies cannot maintain margins on project cost for business in india and hence require lower cost labour

No wonder why engineers are moving to Govt. jobs specially bank jobs.

I second Gandalf's opinion. Indian Employers and employees both are well aware of that; but looking at the current competition from China, none of them can help this issue. China is offering services in such a cheap rate that it's real tough task to compete that. So one of the way is to cut down the salaries of employees.

Second point is if they won't cut down the admin cost (including employees salary / billing rates), what will be lucrative thing that will think US / UK to outsource their tasks? Do you really think they are outsourcing work as Indian folks have great mind boggling experience in resolving / developing the things. I frankly think NO;

I do not want to say that we do not have awesome amazing talent (we need not to prove that we have some best minds in the worlds); but whenever US / UK folks identify a mind boggling guy who is very very good in technical skills, they call that person in their base location just to make sure that their work knowledge is not draining out, and they retain that person by paying handsomely at onsite.

so remaining work that can be worked cheaply is done by the cheap labors (Again apologies for my words) that is By India and China market.

I apologies for harsh words, I may be wrong but that's my thinking on this. The only solution to this is few folks will start some start ups and remain their in India and showcase the world that quality work can be delivered from India.

-CB

One more thing is, we have a steady income and yeah, the hikes are very rare, like once in two years. We have job security and moreover, getting a job in IT field is now a cakewalk. I have also experienced a fact that, the amount of work that we do in an IT company is equal to a huge income outside! 😔 Very pathetic!