Free fall
The principle reason for offshoring US software development is economic - programmers overseas are cheaper than those in the US by a large enough margin to make the additional risk worth it. The rates I've seen around for offshore software development are in the $20/hour range. What happens if the dollar falls precipitously over the next years, as seems likely ?
Let's take the optimistic road and say the dollar falls 20% or so in an orderly fashion over the next few years - do the offshoring prices adjust accordingly? If so, a rate of $25 does not seem that compelling for offshored development. I think you could hire a competent US national for about that rate or a little bit more when you add in benefits for a full time employee. If there is a dollar crisis and we see a 40% fall (as we saw in the 70s), then the economic rationale for offshoring software development basically disappears (although with that kind of calamatious fall in the dollar, offshoring definitely won't be in the headlines any more ;-)