Outsourcing to India - think about where your money is going

Atanu Dey is right regarding the current fixation of VCs on investing in India. The truth is that the economics don't add up right now, and won't do in the near future. India's outsourcing-centred economy is too busy running back office and outsource functions for global organisations to invest in a lively start-up business sector.

India is, and will remain, a global leader in the IT outsourcing marketplace. However, it is not the world-leader for start-up businesses. Poring money into start-ups is money that could be better spent elsewhere...