I would like to just add the small addition of "so?". Bums in seats only increases the quantity of people on your payroll, rather than the amount of software produced, the amount of issues resolved or the quality/quantity of software produced.

The company I am with just had a disappointing experiment with hiring some offshore developers in India, and although fingers can be pointed at bad recruitment or any one of a dozen reasons, there were 3 folks there and all code that came in was of such low quality then it was rewritten by someone before being released to a client.

3 people that our company had in India were replaced by 1 person on-shore.

One of the biggest issues is that there is still a race to the bottom on pricing in India (and many other countries), this does not produce good products but foreign companies are still eating it up, which produces demand and drags people who otherwise would by unemployed become a developer. This is the reason why the number of developers in India is increasing so much. But the issues with low cost/low quality development are starting to become apparent when projects become more expensive.

http://www.techrepublic.com/blog/tech-manager/whats-behind-e...

As has been said before by other much more articulate than I, I am not worried about this.

Taking the article's numbers at its face value - 2.75 million vs 3.6 million is not huge difference.But apart from a smallish startup scenario in metropolitan areas,the situation is still grim.Most work is to be found in the IT companies involved in off-shoring and there isn't much indication that more developers will mean a surge in newer companies involved in more innovative work.