The billing rate is not the only area for competition. However, it is not such a bad idea to look at the largest offshore outsourcer, India, in order to determine a baseline for billing rates.

After a longer period of stagnation (since the beginning of 2003) billing rates might crawl up somewhat by the end of 2004. NASSCOM (National Association of Software and Service Companies) expects about 10% increase, primarily due to growing demand for offshore services. Customers are also open to raise billing rates. The average offshore billing rate in India is in the range of $18-24/hour while the on-site rate is $50-60/hour.

According to analysts billing rates might raise in niche areas such as knowledge and content management.