I hope that you stick around. What the IT people need to realize (I am one, before anyone throws rocks) is that programming, per se, is a commodity, and like any commodity used in manufacturing, it is purchased from the lowest-priced bidder. Don't kid yourself, programming is just the manufacture of computer programs. The large companies like IBM and AT&T have been hiring contract programming in third-world countries for at least two decades.
Twenty years ago there was talk that in the near future, people would be transformed from employees married to a company to independent contractors. I am surprised that it has taken this long to come to fruition. That future is now. And you who speak of company loyalty, that is a dream, as is employee loyalty. If a company can make money and be loyal, it will. When it comes to a choice between being loyal and being profitable, guess which wins? And employees are no different. You can be loyal to your employer as long as you are paid adequately. But if you come down to a choice of paying the bills or being loyal to your employer, guess which wins? It cuts both ways.
I am constantly surprised by the way that otherwise intelligent people live to the fullest extent that they can afford. And I am talking luxury with a capital 'L' for some. One missed paycheck and they are up the creek. I remember a friend of mine - he and his wife both worked. His wife got a $50/month raise. They racked their brains for two weeks trying to figure what they could buy for $50/month with the money!
This attitude is not limited to IT professionals, by the way. I recall walking into a local brokerage branch office 15 years ago because I wanted to open an account. I was dressed casually as I had taken the day off. I was shocked at the attitude I saw. Here were half a dozen guys in their early twenties, sitting at enormous desks in enormous chairs, with their feet up, smoking cigars, each being overly impressed with themselves. They were doing nothing! I stood in the entrance room in full view of them all. After ten minutes, one put his Wall Street Journal down with an irritated look, and came over to ask what I wanted. I told him that I had come to open an account, but after the first few minutes I had realized that they must have enough accounts and did not want any more business. I was just waiting out of curiosity to see how long it would be before someone came over. I then went elsewhere.
I chose to purchase a moderately-priced house while my co-workers bought mansions. My goal was to pay it off in 15 years, but I took a 30-year mortgage to lock in lower payments in case times got tough. I paid the mortgage, however, at the rate as if it were a 15-year mortgage. I still live in that house, which is paid for, and drive mid-sized American cars while my peers drive BMWs and Mercedes.
To remain employed these days, you have to be marketable. This means not only keeping your skills up (often on your own time) but also developing skills that distinguish you from the competition. Yes, it is difficult. Nobody ever promised me that it would be easy.
I will reiterate what I've said before. Develop your skills and position yourself into having something to offer that few have (very difficult) or into performing some sort of service that cannot be achieved by anyone with a computer anywhere in the world with a telephone line or better. There are still many things that require your physical Presence, but you have to look for them. And you have to have moderate goals that are achievable.
Yes, BUT! Having worked next to an outsourced project, what we got was crap.
Now upper management excels at producing and marketing crap, so the immediate impact is not felt. Our company has a graph of cost vs. return for their different locations. Going overseas is cheap, but you really do get what you pay for.
For many business, buggy, inaccurate software is ok and they will gladly pay less for it. But there will always be those who are willing to pay a premium for quality.
Just like everything else, once the boom is over the cream rises to the top and the dregs go to the bottom. If you are good, you will be able to program for a living. It is just that a Computer Science degree is no longer an automatic meal ticket.