I've been wathcing outsourcing go on for several years now. The call center/customer service side is one that I see as eventually coming back to the US. That's for some of the points being made already. First time call resolution is poorer in other countries with low labor. The cheap labor pool may not have the comprehension. Your customers aregetting dissatisfied and will take their business elsewhere.

Will it be perfect? No. It's going to take time for the shift back to happen. Also, other countried are starting to see a shift up in wages as more companies move work overseas. That's unsustainable. Eventually the business model doesn't work as the local wages increase.

You are seeing that in China. Their wages have jumped 30% or so recently as competition for workers increases. Owners over there that were relaying on thin margins are seeing it shrink even more as their labor costs have gone up. Eventually they are having to pass that cost on or risk losing money. They are also having the steel and energy costs rise as well. A triple whammy for them. As their costs go up, eventually the model doesn't make sense and more stuff will stay in the US.

It takes time. It hurts in the short run. But it will come back. Especially as companies see how expensive it is for all the IT outsourcing that needs to get done beacuse they've cut back the local employees so much. We're seeing that now. Major revenue generating projects are on hold because we lack the IT resources and overseas won't work for those projects.

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