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outsourcing - what has it changed?

I am looking for a big picture commentary on the revolutionary outsourcing efforts that has taken over the business world lately.

1)Since outsourcing came into effect couple of decades, what actually has happened to the business world? Has the bottom line difference made up for any deficiency.
2)Has it affected the unemployment rates in the developed countries? and has it really lifted up the unemployment rate in the developing countries?
3)The business wins and also the consumer; but what about the employee - is he taken care of?
4)what are the unshakable benefits of this phenomenon and what could be adverse effects of it in the future, that may be overlooked?

thanks
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tiras gans
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can you explain what do you mean by false savings?
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Tiras25,
lower wages in developed countries- is it better than no wages?
BigRat, is my summary of your points on target:
"outsourcing is good provided it is from a quality vendor, but that mean more money to shell out, but may not be bigger bottom line, but less stress and enjoyment of work."

Is your analysis the same for both international and local outsourcing?

How does wal-mart/china kind of outsourcing fit in the above? Walmart has lot of complaints about cheap products in quality. Can you think of someone who does outsourcing to china but does a quality and good job, that they may not even be seeing a bigger margin of profits.
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