Regarding outsourcing, yeah its an issue, but lots of stuff is going to have to stay domestic. IT Security, for example. You really think companies are going to send that overseas?
umm…yes. I work in IT for a Fortune 200. Our entire security framework was developed in India. We layed off a bunch of US developers last year and hiring more in India.
Cisco has a HUGE movement of critical roles including management functions to Bangalore, India. Initially Cisco will move American management personnel to live in Bangalore but ultimately these will be phased out as local management is seasoned enough to take control:
There are other mission critical projects that have been developed in India such as the design of the wing for the new Airbus A380 which was done by Infosys in Bangalore.
Software development has become easier these days with the advent of automated tools. Yes, there will still be demand for the absolute cream of the crop, the ones that have unique problem solving talents and stand apart, but for most the future is not promising in this area.