http://www.businessweek.com/smallbiz/content/dec2003/sb20031231_3576.htm

The Changing Face of Offshore Programming
Yes, it's still the cheaper option -- but the price differential is 
shrinking fast, and the hidden costs can be fierce

After nine months of exposure to the overseas outsourcing market, I'm 
ready to give an update on the realities of outsourcing for small 
businesses. This is an emotionally charged issue for a lot of people in 
the U.S., so let me start by saying up front that the results are mixed. 
Like a lot of larger businesses, I've discovered a number of hidden 
risks and costs. While I don't think those issues will end the trend of 
sending jobs to cheaper labor markets, I do think the wholesale 
enthusiasm for outsourcing overseas is quickly waning.
... more at the above link ...

Sorry for cross posting; however this is a major topic for all of us in 
the USA. IMO - If you disagree, email me privately if you like.  This is 
not fuel for a flame war.