As Vice President of an IT staffing firm, I can tell you that many of my customers are expressing the same concerns outlined in this article. Overseas rates and turnover are definitely on the rise, as the good resources overseas are consistently being chased by too many other firms. (Remember 1999?) At some point, there is a diminishing return between cost savings and efficiency/ease of doing business. I believe we are quickly approaching the point where the cost vs. risk ratio will result in a lot less IT work going overseas. About 3 years ago, we developed a model (The Homeland Onshore Model) where we demonstrated that U.S. based resources(especially mainframe resources) could compete with offshore resources. We're happy to report that the model has proven itself very well, and may now have more relevance than ever. You can visit http://www.ITOnshore.com for more information.