The real issue, as you seem to hint, is whether the IT revolution will lead to development in India (and a return of boom times in Silicon Valley) or just lead to "body shops" where by IT workers are little more than fancy sweatshop workers. IMHO, two key factors will be involved in determining the outcome of the IT revolution for the workers: 1. the rate of technological innovation; and 2. the strength of the monetary order in India. If technological innovation accelerates in the IT field (and I am quite skeptical at this point) then there is the possibility that the Indian programmers and the Silicon Valley types could continue to receive relatively high rates of compensation. I am assuming here of course that newer/revolutionary industries tend to be able to capture abnormal profits before these profits are whittled away by corporate competition/control of markets. As to the strength of the monetary order, India continues to have a problem in encouraging high rates of savings (as far as I can tell) and so the monetary order within India will be unable to harness the benefits of this industry. A great deal of India's wealth is deposited in real estate and gold rather than the banking sector. India's monetary order will continue to be weak internally so long as it cannot encourage high rates of savings in the banking sector. India's monetary order will probably not strengthen externally since it competes in a world of established reserve currencies. The internal and external problems are obviously somewhat interrelated. So from my limited vantage point, I think you are right that that global IT workers will become/are becoming little more than sweatshop slaves whose earnings will have little impact on the developing or developed world.
Well, that's my two cents.
Best,
Vikash Yadav Philadelphia, PA
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It's starting to happen with computer programmers as well. It will be interesting to see how well the libertarian ethic lasts in Sillicon Valley, as they find their jobs being outsourced to body shops in India.