In case of economic stagflation (stagnant growth and rising inflation) is US, many are predicting increase in offshore outsourcing. Major reason stated is pressure on margins will ask for more cost savings by offshore outsourcing. I still feel its 50-50 situation. Due to stagflation, less purchasing power as a result of weak dollar, more skilled resources/job seekers available in local market at lower cost, pressure to save local jobs may hamper outsourcing to great extent.