The Wall Street Journal reported last week that some U. S. companies have decided to bring offshored jobs back home. This is especially true for start-ups and mid-size companies.  Why? Wage inflation for India’s software industry is estimated to be anywhere between 10-50%. In the U. S., it’s less than 5%. 

As the pay differential closes between software engineers in India doing more complex work and their U S counterparts, one quote says it all: "For the top-level talent, there’s an equalization."  In other words, arbitrage only lasts for so long. And then the market catches up. Until someone finds another pool of talent somewhere else in the world.