I have seen some inflation, Nothing near the % quoted though. I think this is due to the Outsourcing inflations soaking it up (E.G. India Web Designers now saturating SEM/SEO Markets).
Also looking at the Outsourcing mentioned in the article, I have to add that Outsourcing right now (In my opinion) is at an all time high. Everyone looking to save a buck or 2. I see 3 things happening next year as reaction:
1.) A drop in Outsourcing on web design / SEM/SEO projects due to Unreliable sources.
2.) Discrediting of U.S. companies / freelancers That used unreliable outsourcing on piece projects (Reflecting their own image).
3.) An Overall Market drop Due to Trust related issues stemming from clients that feel taken advantage of.
I predict this to happen by May 2008 if not sooner....
Too many reports are already piling in from people using outsourcing agents & freelancers from overseas & getting scammed / robbed / incomplete projects / Specs Not Met / Etc.... Whether it's a communication barrier or simply lack of skills to begin with, Upset consumers are popping up everywhere, it's only a matter of time before a media frenzy occurs.
Once the %'s on SEM drops again next year it may take a bit to get them back up again, Re-Building virtual trust in those consumers that were mislead the first time along with all the doubtful potential consumers that heard about it & have become even more skeptical.
Whether it's short lived or not, I think it will impact the markets as much as the Nigerian Scam did with local media groups.
Just my opinion....
