(*) Good point by Sramana Mitra in the post linked to above.
Similar point about software services companies, IMO: those that compete only (or even mainly) on price (and the majority of smaller Indian ones do that), will mostly fail (*), or at best, stagnate. I've worked with some of them, and seen the results, so my opinion is based on experience.
(*) "You can fool some of the people all of the time, and all of the people some of the time, but you can't fool all of the people all of the time." - A well-known saying.
- Vasudev Ram