"Among the key findings is that while labor cost remains the main driver for hiring engineers in India, China, and Eastern Europe, the scramble to find tech talent is catching up fast. While less than 40% of companies cited "access to qualified personnel" as a key driver in 2004, that number now is close to 70%."
Additionally, the studies suggest that there is a shortage of science and engineering degrees in the US:
"The issue no longer is cost but availability of talent. The data is very clear on this," Lewin says. "A significant talent gap has risen between 1995 and 2006, and that's a problem for companies that depend on engineering talent."