The outsourcing boom in India has led to a shortage of skilled workers which may send future jobs to competitors like China and the Philippines.

In a report by ABC, the shortage of skilled workers in the India is about quality not quantity. HR departments of outsourcing firms said that young Indians are unemployable because of their poor English. The report added that many of the 3.6 million yearly Indian graduates are considered only average.

Related to this, a former call center manager said that if the industry has to pay increasingly higher salaries to retain staff then costs will rise. India will lose their biggest advantage: cheap labor

A study by McKinsey & Co. said that India's outsourcing industry will face a loss of 500,000 workers in the coming years.

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