An article in COMPUTERWORLD (March 1, 2004) talks about offshoring of R&D to India. Specifically, they mention Google's offshoring of some of it's R&D. There's a quote from a guy at Google.  He says:

“Bangalore is the so-called Silicon Valley of India, and there is a large pool of talented software engineers there.“

Google's position is that they're doing it for the talent, not the cost.  Of course there are tons of talented engineers overseas, but do you believe that they are not doing it for the cost?  Have they reached the bottom of the barrel of talented US engineers?  Are big software companies learning how to “spin” press like our political leaders? Weren't the Google founders Stanford University grad students when they created Google?  Has Stanford stopped producing high-quality software engineers?  Could I ask any more questions in one post?