SAP finds Indian techies too costly.

From the Times of India

SAP, the world’s third-biggest software company, is cutting its recruitment of Indian experts because they are too expensive and is instead looking towards China, its CEO Henning Kagermann said in an interview.

With Indians pricing themselves out of the market, SAP preferred to recruit in China and low-cost eastern European nations. “India is getting too dear,” said SAP CEO Henning Kagermann in the interview with the Financial Times published on Monday.

“We’ve decided to only recruit a certain number more from there, and then to start looking around in other locations,” he added.

The Indian software industry, particularly companies based in Bangalore and other high-tech centres, has attracted huge interest over the past decade from international investors seeking sophisticated skills at low salaries.
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Addendum : Its to be noted that an entry level software programmer in India still commands just around $5000, compared to the $50000 for an American programmer.
However this rate is growing at an estimated 11-15% a year.Perhaps its higher.

Further, SAP itself is still hiring in India, albeit at a claimed "slower" rate.

Microsoft plans to double capacity at its Hyderabad center
Google has just set up shop in Bangalore
Cisco plans to inaugurate its swanky new campus in Bangalore.
IBM, CSC and other giants also have grand plas for their Indian operations.

However our real threat remain other low cost offshoring locations like China, Thailand, Malaysia etc