Article at a glance:

The next hurdle for Indian IT

Surging demand for offshore IT services has vaulted Infosys Technologies into the ranks of India's premier technology services companies and positioned it at the epicenter of the offshoring debate. In this McKinsey Quarterly interview, cofounder and chairman Narayana Murthy discusses the Bangalore-based company’s rise and its new challenges as multinational IT services firms open their own software-development centers in India and customers squeeze IT vendors there as everywhere else.

The take-away

Narayana Murthy, the company's cofounder and chairman, says that the burgeoning business in offshore services isn't simply about arbitraging low-cost labor—it's about honing the skills and processes to provide low-cost, high-quality software-development services remotely.