Oh, now I get it, Channel 9 India was started because of the reasons put forward in this thread... It makes sense now.
I would rather pay three times the upfront cost and have a functioning system than sit back and spend years in developnment and the process of interpreting business process to great coders, but not so great logisticians.
Would you pay three times the upfront cost, have a functioning system and have to wait years for it? (Longhorn).
Maybe Microsoft have employed half Non-American and half real American programers, to get the mix of many years in production and a functioning system.
I think the developers haven't left America, they have just moved to the mysterious land of Microsoft. Where all who have ventured to those lands forth, have vanished and not returned. Not even in a whisper.
EDIT2: Good coders seem to live in frozen wastelands!