November 03, 2003

How Much Is That Offshore Contract In The Window

http://www.businessweek.com/technology/content/oct2003/tc20031027_9655_tc119.htm

The issue of offshore outsourcing has been ventilated sufficiently in previous posts -- this one points out that the cost savings are not necessarily all they cracked up to be. While the direct labour costs are in fact much lower offshore, if the quality of product delivered is so low that it requires repairs, then the cost benefits are lowered or eliminated. Firms exist making good money repairing buggy offshore projects.

One would think, at some level of overall cost which would not necessarily equal unity that the second-order effects of offshore offsourcing would also get weighed in the balance -- alas, I suspect, only in some better world than this one.

Posted by jho at November 3, 2003 10:40 AM
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