It seems the gloss has come off some of the largest Indian outsourcing firms. Recently there was the whole Satyam scandal and now the World Bank has blacklisted a number of large outsourcing firms. I don't believe some of the hype stating that this is the end of outsourcing (particularly to India). This is a major issue but this industry is too important to India for the country not to sort it out.
I was talking to a colleague yesterday who is based down in India and he was very bullish about the whole Indian economy and was even talking about leveraging the strength of the Indian economy to pursue investment opportunities in Europe and the US.