As more and more computerisation takes place, more and more software needs would arise. While on one hand Indian software is being threatened by body shopping from China, Russia, and Sri Lanka, on the other there's still a very large pie for which Indian firms can bid. Indian software firms do need to haul themselves up the value chain to address some of the problems of competitors in other countries snapping at their heels. But it is not easy to ward off India. However, a few like Bal Sehgal from QuarkXpress feel that physical presence has nothing to do with software development.
Good professionals have a lot of opportunities abroad.
Companies with business interests in India, or out of sheer patriotism, are attempting to solder the Silicon Valley and India. A few companies fetch business from the USA and the software is then actually developed in our nation. A few believe that India may go the Taiwan way in near future. US business houses invested in Taiwan to take advantage of low labour rates in the '60s and '70s. Later, in early '90s, a lot of manpower, experienced by then, returned to their native land to boost the economy of their motherland.