I honestly think this will continue. I've seen startups, and Fortune 5, Fortune 500 doing this. I believe a majority of the development function will continue to be outsourced. I read CIO magazine regularly, and I see the development process continue to be outsourced. In addition, India, Russia, China, Thailand are becoming good development alternatives. The first round of outsourcing in the early 00's didn't go so well. However, the economics of the situation, and the increasing skill set lead me to believe it will continue. I am sure this comment will be flamed, but it's the truth IMHO. (Note: I have a CompSci degree, done a few tech startups as CTO, so don't shoot the messenger).