IT outsourcing losing its luster?

CIO Insight is reporting that IT outsourcing is on the downswing, mostly due to foreseeble factors like:

• Oversight, administration and other indirect costs are much higher than projected
• Security. Data is the crown jewel, yet companies who choose to outsource are giving data away. What can be done when a foreign company loses your customers' data or uses it to your customers' disadvantage? This is HUGE.

Anyway, outsourcing is not dead yet, nor will it ever be. It's just not the rage it once was.