Another Blow For the Dellsnots 1129

Actually you see it done by all sorts of companies at all levels of financial status. It really has nothing to do with the richness of the company, it has to do with perceived ROI. What many companies learn after several failed-over-budget projects is that Off-Shore (and it doesn't matter what country) does not automatically mean lower costs - there is a lot of management overhead involved in ANY off-shore project.

When you think you're getting a call center worker for his wages of $4-hr, you're really going to pay about $15-hr due to the management overhead, communications overhead, etc.... Developers in off-shore orgs are now seeing that they have value and demanding higher wages, when we could get good .Net developers and Oracle DBA's off-shore for $9-hr years ago, we're not getting them for $20-hr for the same types of people.

Again, off-shore does cost local jobs, but there is a lot more to it than just jobs - there is almost always a failure of the project when a company FIRST gets into off-shoring. After a couple experiences they learn what they needed to know with the first project and things get better. What is really telling is when a complete accounting (money) of the project is done, without hiding any costs, and seeing that off- shoring most "projects" (we're not talking about textiles here) doesn't yield the ROI that was used to justify all the infrastructure changes, all the additional management hours, etc...

It really has nothing to do with the country the company outsources too - it's about differences in culture and communications.

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