Accountancy services, for example, driven by better internet connectivity and their easily codifiable nature (see Learner and Storper, 2001), may have now become more offshorable. Since these services are high-skill labour intensive, theory would suggest that these being offshored to India would lead to increases in inequality in India as wages of high-skilled workers rise relative to low-skilled workers. This stands against the traditional assumption that it is only low-skilled labour tasks that are going to be offshored to India (and in line with the assumptions of Zhu and Trefler, 2005). But at the same time, firms may also outsource their telephone services to India which involves a relatively less skilled labour force.