China

I decided recently to set up a branch office for my company in China. I have sent over one manager to serve as an "expat" and set up and administer the operations there. His initial feedback are filling me with a mixture of awe and fear.

Awe because Shenzhen, the city where our office is based has grown from a village of 300,000 people to a magapolis of 8 Million in 15 years, because the infrastructure is as good as the US and because half of the world's construction is happening in China right now.

Fear because its apparent to me that India is going to stop being the favored outsourcing destination in 3-5 years.

Cost:

Rentals in China are dramatically lower than India. We have got office space in a posh glass facade sky scraper for less than a 30 year old building in Chennai.

Salaries are lower in China, even for highly educated, English speaking individuals - Salary inflation is lower as well.

No power cuts - No diesel cost for generators.

Exchange rate is pegged to the dollar and gives exporters consistent income.

India is doomed. I give this entire growth story 3-5 years before leaving in its wake a whole generation of over-paid, under qualified people in its wake.