Sure, corporate America is outsourcing, but not so much overseas as to other American firms like my own.Outsourcing makes sense, however. Most companies aren't in the software business. In other business aspects, companies already outsource when the work involved isn't their primary line of business. For instance, most companies employ external legal aid rather than hire their own attorneys. Most firms employ outside plumbers rather than hire their own. Most firms employ external print shops rather than hire the graphics designers and purchase Heidelberg presses.
So it's only natural that non-software companies outsource their software development rather than hire a bunch of programmers themselves.
But outsource to Singapore or India?! Man, I've been there and done that, and there just isn't the quality, timeliness, and flexibility needed for most dynamic American corporations. One of our India projects, for instance, was getting email responses from the Indian director that all was fine up until the deadline, at which point he never wrote to us again, even when we held back his checks. We later learned that he had simply found something else (presumably less difficult) to do and moved on without telling anyone (OK, without telling us, his client). That might be fine in India's culture (and some of their programmers who have made it to America are decent), but it clearly isn't the way that American businesses want to operate. Fortuneately, for us it was a small project but a big lesson that confirmed our experiences with other, similar offshore efforts.