Outsourcing bell's been rung...

and there ain't no unringing it. WSJ.com - Venture Firms Seek Start-Ups That Outsource. Excerpt:

At Kleiner Perkins Caufield & Byers, the graybeard firm of Silicon Valley venture capital, partner Ray Lane recently returned from his own trip to India. The former Oracle Corp. president says 30% to 40% of the start-up companies his fund has helped finance have sent work offshore. "These are basically five to 10, maybe 20, people. Small operations," he says.

At Mayfield, another Silicon Valley venture firm, partner Yogen Dalal says: "If you talk to all the leading VCs here, 50% to 60% of their portfolio companies have some interaction with India. But what really will happen in a couple of years, 90% of all start-ups will have some connection to India or China. There's no going back."