“You’ve seen cases around where they’ve gone offshore, folks on shore either started to leave or been laid off people are highly demoralized and now they’re finding things aren’t working quite as well as they’ve hoped,” Salzman said. “The perception out there is that the future is uncertain.”
In both cases these efforts have flooded the market with lower-cost foreign workers who are supplanting an already ample field of home-grown IT labor. The result is that the myth of an IT skills shortage could just end up be self-perpetuating.
“The trouble is that it creates a disincentive for Americans to study these technical fields,” Wadhwa said. “We’re hurting ourselves; computer science enrollment is dropping because the incentive is not there for students to study computer science.”
Oh, and this LA Times article leads off with an unemployed software engineer said to be down to his last months of mortgage payments after selling his stuff off on eBay and liquidating his stock portfolio.