Is there a tendency of companies relocating to India rather than recruiting labour force from there?
Yes, I think that is happening as costs for both high end and also techno-coolie work is cheaper here. We interviewed the head of Philips over here, and he made that point that there are some of these firms, including Philips, who are really looking at locations in Bangalore not for what is called techno coolie kind of work, but actually high-end software work. They would locate these people from a general population pool and then train them for their own product development. The kind of density they could get here is not possible in places like Ireland or Israel, for example, and not even in Silicon Valley. That is one part of the market, we don’t really know how big it is, but obviously it is a part. There is another interesting issue: The demand for locations is not only driven by possible returns on technology or labour (whether techno-coolie or high-end), but by way financial capital seeks surpluses on real estate. There has been substantial research on Indian IT labour, but so fa
