I guess all those grads looking to bring their dog to work are going to have to learn to like cube farming.
This has little to do with outsourcing work to India. This has alot to do with companies not spending on new projects until they get their financial house in order. The market sucks right now but I have seen some indications that people will start hiring again.
I also think alot of dot.bomb jobs went away. Those tech support jobs going to new "multicultural arts" grads (who don't have skills for typing) for 85k quickly disappeared when the dot.bomb bubble burst.