This is a good argument to bring up but I think it will have the opposite effect. Right now if you look at e.g. India, there are lots of outsourcing companies

This is a good argument to bring up but I think it will have the opposite effect. Right now if you look at e.g. India, there are lots of outsourcing companies but workers don't stay long at these places. They get in, get experience and then move on somewhere they can make money. Usually somewhere in the west. If telecommuting were to take hold, yes that would mean I would be competing with people from e.g. India. But guess what: I already am. The biggest difference would be that people from India wouldn't have to move to the west for years, build up their income and then move back. They could stay in India if they wanted.