[throw345hn]

I actually think this will result in accelerating India's growth in the tech sector. There might be slight downturn in the shorter term for the services sector but this will be compensated by the product companies.

Once the above happens, I actually think it will have a net negative effect for the US tech sector. Yes you can still find the best engineers to come to the US, however once salaries start rising in the developing countries, people will not want to flock to the US.

A clear example is the aviation sector. Pilots from the developed countries flock to fly for the airlines in the Middle east and Asia. Look at Emirates, Etihad, Air Asia etc. Many of them are expat pilots.

[DamnYuppie]

This is because of the seniority system put in place by the unions. They pilots fly over seas as there are not a lot of jobs at major airlines flying the big planes domestically.

[throw345hn]

Yes there are not a lot of jobs because the airline sector doesn't have much growth in the US. Compare that with the the economies of developing countries, they are growing rapidly. Another example from India is Indigo (which is a major domestic airline) recently ordered close to 200 A320 airplanes which a massive bet on growth.

I would think the same thing will happen to the tech sector in the longer term where the demand and growth will go to Asia.