I think you are mistaken, it's more like there's tons of IT people and not enough jobs. Everybody wants to do "computers" these days. Whether it's standard IT, programming, sales, consulting etc... Most companies now outsource that stuff as they see it as an expense and at the same level as janitorial services or building maintenance. They don't really want to waste their time or have any liabilities so they farm it out. The companies with big strong unions tend to insource stuff more though. Or more like, they tend to keep stuff insourced.
I got lucky with the company I landed a job at since while I would not say they have a "strong" union, it's at least insourced IT and I don't really see them change that as we are sorta an outsourcer in a way so if we outsourced there would be 2 levels of outsourcing, probably a bit much. Now I work at the NOC which is not really IT but similar field I guess, and I really don't see them outsourcing that given all the credentials we have to core systems like the switching, fibre optics etc... Then again companies can make stupid decisions in the name of money. Our biggest fear is that they relocate our NOC to another part of the company, but there arn't really any signs saying that may happen. Our NOC does a lot more than any other NOC though so if they did strip our jobs away they would have to spread it to several other NOCs and probably hire more people... not worth it.
If I did lose this job though, there really is not much else I could go to. I would probably have to go back to school and look into trades or something. I'd probably go for electrical/plumbing or maybe just general contracting and start my own business. It's a lot more work than I realize though. Just doing my basement alone took a while, heck, just bringing all the materials in the basement took about 4 hours. That would be unacceptable from a customer's point of view, why would someone pay me 4 hours and the job did not even start yet. Mind you I could specialize for small jobs, it's hard to get contractors for those as they're all too busy on big jobs.