Outsourcing has been around for a decade and we still have jobs.
On one hand, the pool of IT professionals in this country is shrinking. Computer science is extremely unpopular among young Americans – IIRC the percentage of computer science degrees is something like 2% among males and 0.2% among female. American software companies can’t bring enough H1B’s to satisfy demand.
There is a certain wage gap that is necessary to keep outsourcing profitable. Growth in emerging markets pushes on this wage gap and makes companies in developed countries less likely to outsource. Wages in India, China, and Eastern Europe are growing 10-15%/year. In 2000 you could hire a bunch of decent programmers in Moscow for $1000/month and they’d be happy to work for you. Today you offer that salary and they will laugh at you.
