From an Economic Times article,

Country’s two largest software exporters, Infosys Technologies and Wipro Technologies, anticipate wage pressures might not only slash their margins but also prevent them from maintaining their competitive advantage.

…

“Wages in India are increasing at a faster rate than in the United States, which could result in increased costs for companies seeking to employ technology professionals in India, particularly project managers and other mid-level professionals,” Infosys said in its recent annual filing to American market regulator Securities and Exchange Commission (SEC).

…

Wipro has also cited wage pressure as a business risk in its latest annual filing to the SEC.

You will find these statements ironic if you read another article that came in the Times of India:

IT giant Infosys’s human resources head T V Mohandas Pai takes home the highest salary and bonus among all the board of directors of the company, including chairperson Nandan M Nilekani and chief executive officer S Gopalakrishnan.

According to Infosys’s recent filing with the Securities and Exchange Commission (SEC), Pai receives a salary of $82,033 and a bonus of $3,08,625 in a year, the highest among the 15 members of the board, the firm’s The Board is chaired by the firm’s chief mentor N R Narayana Murthy while one of the co-founders and director Nandan M Nilekani is the co-chairperson.

While Nilekani receives $51,414 salary and $1,22,841 as bonus, Narayana Murthy does not take home any of them but $1,25,000 in annual compensation.

I think it is debatable whether it is actually the low and mid level employee salaries or the executive level salaries (and huge bonuses) that is the real “business risk”.