Despite what the media would like us to believe, their is not a infinite supply of educated workers in other countries suitable for performing outsourcing tasks. In fact, I wouldn't be suprised if WinPro and others haven't already sucked up all the 1/2 decent computer programmers in Hyderabad and Bangalore & are praying for the north of India to hurry up and figure out how to educate all the kids they keep churning out up there. http://www.economist.com/business/displayStory.cfm?story_id=4135319 Then again, says the McKinsey Global Institute, if current demand continues, the supply of suitable labour in the popular cities of Prague and Hyderabad will run short by 2006 and 2008 respectively. The demand for engineers from Britain and America alone, it claims, will use up the suitable supply in all of China, India and the Philippines by 2011. The institute advises firms to choose their locations carefully. It is hard to switch later “because of sunk costs in physical and human capital”.