Check out Google's App Inventor - essentially it allows anyone to create their own Android applications without running a single line of code. The upshot: the productivity of software development is growing exponentially because the range of people who can design good software has been radically widened. The result is that the idea people can now code their own solutions - at least in part.
The massive growth in productivity is rapidly shrinking the level of effort needed to run apps and therefore means that labor arbitrage strategies like software engineering offshoring are likely to be short lived. Once again, as always, it's market innovation (aka marketing) that is the irreducable core business skill. Everything else is just busy work.
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