The report is in response to a number of queries to Forrester from clients who wanted to know what discounts they should aim at in their negotiations with Indian vendors, said Sudin Apte, senior analyst at Forrester Research on Saturday.

Customers will however have to watch out for the impact the cost cutting by vendors may have on the quality of service offered. More junior staff may be deployed on projects, and service providers are likely to invest less on innovation, Apte said.