The market has been worse than reported for a long time... I have just moved from one high tech center to another, mainly for family and the climate; But I have been in the business many years - The internet boom, the flattening of organizations, a focus on cost, and the outsourcing option have spoiled the career path of many over the past 15 years or so. My conservative estimate is that both market size and salaries have dropped on the order of 25%, displaced my these factors.

And there are odd new realities: Being experienced now means being old and un-hirable in the eyes of many... even if you have rare knowledge of real things(e.g. how to make a web app usable, scalable, resiliant, secure; or How to make a company work, versus a piece of code). Having a blog or a facebook presence seems to matter more than deep technical knowledge or experience. Our technical mastery is being displaced to other countries that are more disciplined and more hungry... and we have devolved into a focus on flash.

There was a time when you could stand on furniture and not have it buckle. Our technological foundation has gone from hardwood to wicker and plastic... A return to quality along with flash would be nice. It will in fact matter.

That the jobs will go to US workers depends on whether we provide sufficient value in a global marketplace... Not just good product but at a reasonable price. Outsourcing went overseas because (1) it could - via the internet, and (2) it made economic sense for the corporation. Unless the government imposes restrictions on the current model, you can expect that to prevail. Unless You - Yes You - drive your own value up... You can expect the market to overlook you.

The IBM thing - no biggie; Companies routinely align with functions, then with customers, then back again. Functional focus finds new economies... customer focus raises service focus.

I do think that our economy is in for a general shock; Standards of living will falter, more balancing will occur globally, markets will shift... without even mentioning that we are going to struggle with energy and ecology issues.

Your own employment is now yours to maintain... A solid technical, business, and professional foundation will make the difference. This is a generalization - But if your job went overseas, it was because your company started focusing on cost... If the productivity had simply been there, the need to find cheaper would have been diminished. I do think the government has been somewhat incompetent and perhaps complicit in the outsourcing craze... but market forces were the dominant contributor. If you like being in IT... take care of your skills and your image. If your skills are solid and your work well known, you should not go hungry and will likely do well.

Ultimately - Justice(market viability) will be a global decision now - I would not bet on a return of the 1990s...