[dannypgh]

I think this just means employers will still have incentive to hire people to be employees (as then they benefit from the employee's growth), rather than contract out work to firms which may reassign or replace the (now valued, experienced) employee. When you contract out instead of hire, you're giving an incentive to a firm to get the work done as cheaply as possible, and that's not always the right trade-off.

The earlier waves of outsourcing were about shifting things like management responsibility out of the company, and I think that was shown to have unintended negative consequences for a lot of firms. I don't think there's much reason why an employer wouldn't be excited about hiring good, talented people from cheaper labor markets now.