Really this is the critical problem and these companies are being VERY shortsighted.

American car manufacturers are moving almost all of their IT development to India, but who buys their cars? Do Indian's have the income to purchase American cars? No, certainly not on the salary the manufacturers are paying them. If you remove the white-collar jobs from the US and Europe you remove the consumer?s purchasing power, the people in US won't be able to afford their own cars and they are the bulk of the customers!

So they are shooting themselves in the foot.

The same goes for IT. As much as computer manufacturers drool over the possibility of volume sales in Asian countries, the price will be comparable to their income level (1/6) so they will sell 10 times as many computers, but at 1/6 the price, and they will lose their primary income base in the process. What happens after that? When IBM no longer employs Americans, American non-IT companies no longer have enough customers with income levels to stay in business, and thus no longer need IBM's services.

It's doesn?t take brain surgery to understand it.

The problem is they see the textile industry and electronic industry (where outsourcing did work) as an example. What they fail to see is that those markets only work if the majority of the revenue remains in the country, so that the consumer has money to consume.

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