Infosys Technologies, India's second largest outsourcer, announced last week that it was freezing staff salaries for the year.

Hexaware Technologies, a mid-size outsourcer, said in March that some 350 staff that were not working on projects, would be paid 50 percent of their salary until the company finds projects they can work on.

As outsourcers hire less, staff attrition has dropped from 15 to 12 percent, and may even go into single digits, Forrester said. Suppliers are benefiting from lower headhunting fees and staff replacement costs, while customers will benefit from higher retained institutional knowledge, as there will be fewer new members in the teams working for them, Forrester added.