Running a consulting business can be a juggling act. It's not easy to manage a variety of accounts while also continuing to look for new business. And, in light of the tough economy, clients are looking for ways to cut back on services.

What to do? Well, you can try to find new revenue sources. And one interesting option is to sell software products.

My colleague, Aaron Katsman, and I have been discussing a web project recently. We decided to farm it out for bids on the web to a firm called Elance. Elance is an outsourcing marketplace bringing together people who need work done with service providers around the world. Participants are engaged in labor arbitrage, a practice of sending work where work is cheapest. We received one bid back from an Indian partner that was outrageous. It would have been cheaper to do the work locally in the U.S.

Which brings me to my point. With the dollar's decline and the growing affluence abroad, it's getting cheaper and cheaper to do the work domestically -- which might spell the end of Indian outsourcing.

Professor Mark Perry had an interesting post recently entitled just that, The Coming Death of Indian Outsourcing? While the title of the post ended in a question mark, Perry sounds pretty dour on the future of the disparity between Indian labor and that in the U.S.

The money line: "Assuming a 15% year-to-year salary hike rate, and a 2007 cost advantage of 1:3 in favor of India, if U.S. wages remain constant, India's cost advantage disappears by 2015. Then what?"

While there will always be international labor arbitrage, the U.S. may be in the early stages of seeing some of the business it's lost to overseas providers the past couple of years come back to it.

Can you imagine Silicon Valley cheaper than Bangalore?

Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.

"It's common for business owners to want to manage everything," said Fabio Rosati, who is the CEO of Elance, which is a web-based system to help businesses find, hire, and manage professionals. "But it's now getting easier to outsource no-core functions, which is what larger companies are doing."

Basically, outsourcing can be cheaper and mean higher quality (do you really need to understand payroll?). More importantly, you will have more time to focus on the things you do best, which should help to grow your business.

So what are some of the things you can do?

Time audit: As a result, it's a good idea to do a "time audit." That is, where is most of your time being spent? And can some of these activities be offloaded -- leaving you more time to make money?