falling prices of web applications...

This article originates from a signboard in New Delhi, which drew my attention. The signboard boldly echoed the price they(company) charge for developing a static website, "Websites @ 2999 only", i really felt that , "this is the highest degree of cheap labor". And this is very true for all small Indian IT companies, mitigating their own future prospects (the prospects, which we proudly own as being one of the largest IT services provider country) . I will illustrate how, these low prices attract at least those clients whose parameters for a good website and services are not very clear to them. their picture for a website is just confined to what appears in a browser.And the number of these clients is remarkably big.So a big shift from other countries/big companies/quality providers to price negotiators can occur. And if this tradition of low prices is forwarded in future, all other(same type of companies) will be bound to offer their services at the same rate. So all will have almost equal share of those clients, and all being served at the same low rates, consequently this will appear like "hum to dubenge sanam, tumhe bhi le dubenge"....all are eating less, for eating more if you again lessen the prices and expected that, yes! now more clients will come, this will make others to revise their prices and you will eat lesser.

so, low prices are definitely one of the primary concerns for clients, but this should not be reflected in IT business strategies , rather quality of work, good maintainence schemes, good technical support and other very obvious parameters can fetch better results...