Well, one poster suggested that we are just a rest area as the foreign outsourcers find their way to India and China. They better hurry they'll be going out of business real soon paying American wages.
There is no mystery. Follow the money - WSJ represents the interests of those who profit from out-sourcing. I would not put much value in WSJ assertions in those matters. But I grant that they have excellent spin doctors and they know on which side their bread is buttered.
Sooner you will get Osama to confess Jesus Christ then them to repent.
Europe has a high labor cost/tax structure compared to the United States. My company bid software work at a schedule and price that no European company could legally match. That was in 1998. An Indian company could have eaten our lunch with their much lower labor rates (comparing rates today). The Indian competition was not there in 1998. It is here now. The 15 engineers that implemented the 1998 contract are now spread all over the U.S. in new assignments. They can not economically compete from the San Diego office that was so viable in 1998.
BTW, an Indian company could kick our butts on labor rate today, but I seriously doubt they could beat us in the areas of quality and schedule. For short fuse projects, we can deliver the goods before the Indians can even figure out what is desired.