These are the two important problems in addition to the bureaucratic problems, labor law's and government interference's etc. For every company to become globally competitive people has to change their mindset and ability to perform. It's a very very competitive industry. The competition is to that extent that if the company doesn't perform it can go down the drain in one to one half years time. It's highly cost conscious industry.
Indian customer is a very wide customer.
We cannot particularly say that whether he is a cost conscious or high quality conscious customer. Besides that technology is changing very fast. To survive in this environment unless the employees are highly innovative and highly performance driven the company will not retain its position. I would like to quote a study done by Noble Hewitt. And depending on the age of the company the issues might be different but the basic problem of performance driven culture is there.