Ok Company 3 is in trouble, they are losing market share and they start to lose money. They go out of business. Company 1 and 2 gain 3's market share plus there are now 100 more IT persons to employ which pushes down wages WITHOUT ANY OUTSIDE FOREIGN IMPORTS. This is your cost reduction mechanism.
So I believe in creative destruction.
Fortunately, your peculiar version of economics is not mine at all.
You never addressed my question of foreign companies. Because they are the ones who would fill the void—unless you pull up the draw bridge and go for complete economic isolation—which would be a disaster.