In 2004, I heard a sales pitch from a VP of a big outsourcing outfit in Bengaluru (fka Bangalore). In response to a question about turnover and preventing it,

In 2004, I heard a sales pitch from a VP of a big outsourcing outfit in Bengaluru (fka Bangalore). In response to a question about turnover and preventing it, he said they were giving raises of about 7% to their developers twice a year. That was crazy. That was Sili-Valley crazy. There are limits to growth. It's too bad they're hitting good people. But the business model of Infosys and other outsource IT services giants has always been arbitrage: buying something where and when it's cheap and selling it where and when it's expensive. Arbitrage is a risky game in the long run. And when the commodity being traded is people, people are bound to get hurt. It's just reality.