The recent downturn in IT and software employment may continue even as the economy improves. Global providers of IT services, especially in India, are poised to permanently capture a large share of IT service and labor. In many ways the international outsourcing of IT services and software development is beginning to resemble the pattern of the U.S. automobile industry during the latter part of the 20th century. U.S. IT education and business leaders need to study and respond accordingly to this global challenge.