Ok lets get something straight. We're not being replaced. Some of us are closing our source code, speaking at conferences and not sharing until this all passes.
I speak at SpringOne, API World and consult with Amazon, Netflix, Starbucks, Cisco, Apple, VMWare and others. And here is the honest truth: the problems that people had with outsourcing are the SAME problems we have now with in-sourcing.
- people lie/exaggerate blatantly on their resumes to get into the country and get a job. This is so prevalent that Indian Universities/Consultantcies actual teach people to do this (https://www.quora.com/Why-do-Indian-consultancies-in-the-US-fake-resumes-and-market-candidates-for-IT-jobs-Why-has-this-practice-continued)
- cultural difference can make it difficult to get things accomplished and/or understood
- cheap pay does not make up for longer development time and having to rebuild work. EVERY company that I have talked to who has done this has had issues and had to hire local experts to make up for the H1b/insourced work and either redo it or try to get it back on track. This in itself creates additional cost.
Its like the lessons of the 90's-2000's are being learned all over again. An honest resume and people who are indoctrinated into your culture are who you want to use; you cannot shake and bake experience and culture.