Richard Florida has a break down of susceptibility to off shoring of jobs in the United States by area and city. Phoenix is one of those that is highly at risk to off shoring.

Far fewer knowledge-based regions make this narrower list of jobs that are at high risk to offshoring. Sioux Falls, South Dakota, has the highest percentage of these highly at-risk jobs, followed by Omaha, Dallas, Phoenix, and Jacksonville.

Anecdotally, we have an off-shoring group, the main reason is that there isn't enough software engineers in Phoenix, or California, to do all the work. It isn't a case of jobs being moved offshore, rather it is because the US labor market cannot keep up with demand.

The main issue with off shoring is that it is hard to get good software engineers from off shore operations. I don't know why, but the quality of the off shore engineering is usually abysmal. It ends up soaking up a lot of time of other engineers who have to go in and fix things, often even just get it to deploy.

The previous company I worked at canceled their off shore operations and changed it to a near shoring operation. They were a San Franciscan company and decided to near shore in Phoenix. They created an engineering and manufacturing operation in Phoenix to support their Californian office.

It is a complex world and labor market at the moment.