A general shift in motivation for outsourcing is already apparent. Offshore outsourcing to India is about quality and value addition at a reduced cost. The fact that despite more cost effective locations so many companies continue to outsource to India is proof of this.

Cost was no longer the only reason why outsourcing to India is an attractive option. Companies in countries such as Russia and China have begun offering better rates. The difference lies in their strong focus on quality and their experience delivering a wide range of services. Major Indian software vendors have developed global services delivery capability to an extant that is high above than their counterparts in other countries. India's workforce also offers the largest pool of technical skills in the world, with the country's universities churning out Lakhs of engineering graduates annually.

Indian companies have also realized that cost cannot sustain the country's current dominant position in the offshore outsourcing industry. The way business is conducted is constantly changing. The perfect cost formula of former years is no longer the way to do business today. Now the mindset is changing from a company that simply provides services to one that provides solutions.

Many companies are now outsourcing with quality rather than cost in mind. There are a number of validating factors for this. Google's decision to set up an R&D center in India reflects this new mindset.

Offshore outsourcing was initiated in the beginning with the objective to cut costs, but now it's no longer driven by cost factors alone. Tapping into talent that is scarce in many of the developed countries is a primary objective.

The new mantra of offshoring to India is quality solutions. When processes are offshored to India, companies not only get the advantage of low cost but also experience improvement in productivity and quality.