Are we (IT in India) on the right track?

Well this post is just about my rumblings from my experience in the IT Industry :-( What makes me feel sorry is that lot of (IT) companies in India prefer to play it safe. In the sense rather than intellectual property they go behind constant flow of revenue. Which basically implies that most of the well established IT companies also don't prefer to risk it out to invest there resources into a product development, rather they would prefer to go in for a service contract with their customers which would atleast ensure them a constant revenue inflow for next few years. Part of this could also be because of the prevailing market uncertainties which is making them act double cautious. Having said that, personally i do believe that we (Indian IT companies) some where in the future would be faced with a situation where in we will have to start investing in developing products rather than just providing services. Because today, thanks to the rising salary costs, India is fast loosing its cost advantage to other competitors like Philipines which are much less costly than us. It would be very interesting to see how Indian human resources are prepared to face this challenge.