Here is a very long article by Daniel Drezner on the The Outsourcing Bogeyman. It is an extremely well thought out and well written article on the myth that outsourcing is taking away American jobs. What's more, he cites very credible evidence and gives very well thought out explanations on the common perceptions (or mis-perceptions as it were) about outsourcing. I'd provide highlights, but the article is so well thought out, its hard to take tidbits out and do them justice standing on their own out of context.

One thing that is not mentioned in this article is how he thinks the importation of workers into the United States affects the economy. This is especially noteworthy in the software sector where I believe there is a large influx of people from countries like India on the H1B Visa program, not to mention jobs taken by illegal immigrants. That would be a very interesting article topic indeed I think.

Either way, read the whole thing. Its well worth it.