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When I read stories like this, I am actually encouraged, that means there is going to be less competition, and all of the pretenders and wannabes will be long gone. Eventually there are going to be so many IT projects, that there is no way that even offshore resources are going to be enough.

What we had was a glut of projects in the late 90s due to Y2K and the growth of the Internet. It was inevitable that it was going to scale back after 2000, on top of that the dot bombs. The downturn in the overall economy meant that projects that were on the table were cut back, unless they had some ridiculous ROI to justify it. There have been a tremendous backlog of projects and as the economy improves more and more will be approved, by then managers will be begging people to come on board. Keep the faith, I love what I do, and that is why I stay in the game even in the lean times. Sometimes I have to give away my work, and consulting for free. That's the way it goes sometimes, and in any entreprenuerial venture (and like it or not, we are all entrepreneurs now) you have to plan for the down times, and save during the good times.