On the other side, the life is getting very expensive there, at least in Bucharest. Clothing, food, rent are very expensive;the first two actually comparable if not more expensive than here.
Another thing that is happening there is that the quality of education has decreased since 1989.
IT industry is getting better. There is a concept of "apartment project"...basically a bunch of programmers get a project(outsourced?) and they rent an apartment to work in there for the duration of the project.

AS far as IT goes here, I think there is a cycle..Jobs leave but they would come back. At some point, it wont make any sense to outsource anymore since the costs to develop soft will be similar everywhere.