There is no question that Indian IT industry has emerged as winner when it comes to outsourcing. But it’s just not limited to low cost services and cheap labour. ‘Quality’ is the factor which decides everything. All major Indian IT companies are having many top MNCs in their client list. But retaining these customers is the toughest job and this can not be achieved only on the basis of low cost.

Sabeer Bhatia, the founder of Hotmail said in a recent interview that Bangalore, the hub of the Indian IT industry is right now more of a Services Valley rather than a Silicon Valley because: