Cloud Computing Set to Rain on Indian Outsourcers’ Parade - Digits - WSJ

Cascading cloud economics

"The cloud infrastructure players are drastically cutting down prices and starting to create pricing pressure on service providers in India and elsewhere who continue to set contracts based on the number of engineers deployed in a project.

Cloud infrastructure providers such as Amazon Web Services, Red Hat, Rackspace Hosting and others are emerging as a formidable threat to Indian outsourcers and other traditional service providers and consultants including International Business Machines and Accenture, that earn revenues from managing the technology infrastructure of clients."

Cloud Computing Set to Rain on Indian Outsourcers’ Parade - Digits - WSJ