Is Automated Testing the answer?

Automated testing or manual testing?  This question seems to be on everyones mind.  Several job openings specifically mention the requirement, that experience in automation is required.  This seems to make sense, as a majority of outsourced projects to India consists of mundane work, which includes but is not limited to comparing two sets of data, verifying if the output from an older version matches with the input of the newer version etc.  These kind of activities can really kill a testers analytical and bug detection skills.  A fellow tester who has been working in the testing industry for about 6 years now had to relent that the role that he performs the above mentioned tasks manually and feels he is not doing justice to his background (which includes a Masters in Computer Science).  Unfortunately, it is the feedback from these people which gives the testing profession a repulsive outlook to many of my juniors that I have seen over the years. Ultimately the choice of whether to Automate or go Manual with the testing effort solely rests with the client ( I am referring to the Software services Industry).  I believe it is under these circumstances, that automation can definitely help.  Yes, I know there are a lot of other things that we need to consider such as budget needed for licenses of  some tools that are so expensive, that it makes me wonder whether there would be a Return on Investment at all.  Add to the fact that some companies would enforce a de commissioning of their tools with which the skills learned could also become totally obsolete.  Yes I know open source tools could bring down the costs, but the timely support may once again cause expenditure on Investment rather than a return on investment.  These very thoughts are scary enough for the customer to go manual.  Yes I am a strong supporter of manual testing, but please spare us the mundane torture.