This particular article was short on detail but also pretty telling.
The "magic" of offshoring is rapidly declining, no so long ago the cost differential between a U.S. employee and an offshore resource was frequently 5 to 1 which allowed for a lot of innefficiencies and overhead when dealing with offshore resources. Today the cost differential is closer to 2 to 1 (particularly with the weakness of the U.S. dollar and the rising salaries in places like India). At 2 to 1 (soon to be even?), the cost savings are often outweighed by the difficulty of working across time zones, cultures, etc. and local resources become much more attractive.
My personal opinion is that there are a limited number of people in the entire world truly capable of operating at the high levels required in today's complex environments - I suspect that we'll eventually see a fairly level playing field globally, good/great IT folks are hard to come by and only a small percentage of the global population is truly capable of "playing" at that high level. There will always be a certain percentage of work that can be farmed out to the lowest bidder but to be honest I've seen IT get harder and harder, not easier and easier, and the skill/talent required to be truly effective in IT in general continues to rise.
Hopefully, the lower number of folks choosing comp. sci., etc. as a major is really a measure of those who are truly interested in the opportunities/possibilities of a career in IT rather than an admission of the futility of a career in IT - only time will tell but again, I suspect that the truly good/great will always be able to make a good living in our business...
P.S. Recruiters - I would love to work/live in Australia or NZ... actually anywhere abroad, I love learning about new cultures and people.