Companies are in the business of producing as efficiently as possible. Even here in the states there is a market for labor. I believe many companies were overzealous in outsourcing in past years. Cheap doesn't always mean efficient. I believe using outsourcing for specific, well-defined projects, can pay off. Moving your whole development center overseas would probably be a big mistake. Remember, company executives are accountable to their stockholders. If outsourcing raises the value of the company, then it is a good move. They just need to make sure they don't kill the goose laying the golden eggs.