Firstly, it is fairly valid to assume that Rising Wages & attrition have a more than moderate correlation. It is because of rising wages, people tend to take those premature job hops.
Causes: Its a pure-play Demand - Supply game. And to me, it's phenomenon - in - transit. As IT/BPO companies claim moving up the value chain and sorts, that entails those companies to show clients reasons that justify their pitching for high-up-in the value chain work. And as top IT/BPO companies, they set a benchmark for the industry's rising costs. The higer wages is acceptable to these companies since the objective most times is ensuring the company succeeds in its new services footprint. This has a tricke-down effect since large number of employees working in IT/BPO space target such niche-new services start up teams. Also, there is domestic India