My theory on IT outsourcing has always been that it will decline as soon as the crappy results come in. If we just let the free market process take its course, all will be worked out. As it should be.
That, and the fact that there's a whole bunch of lawyers who are going to get rich in the emerging litigation market overseas. While there may be a flood of outsourcing now, you just wait until the lawyers and insurance companies sink their teeth into them overseas countries where labor is so cheap. Just as we export technology and jobs to cheap labor markets, we'll export our labor laws , unions, insurance regulations and health care programs. That'll prove to be the great equalizer.