[SwankyC]

Foreign labor costs are relatively higher than local labor costs (more American jobs).

Uhhhh, no labor costs just WENT UP. An outsourced job does NOT cost more than the American equivalent.

[Philistone]

Huh?

American Job A at time A costs: $40,000.
Indian Job A at time A costs: 200,000 Rupees = $20,000

American Job A at time B costs: $40,000
Indian Job A at time B costs: 200,000 Rupees = $30,000

Add in the administrative costs of dealing with foreign companies and the difference between 1 and 2 means it’s cheaper now to higher an American than before.