Like jaydorn, I've only seen outsourcing done in the context of software development.
In EVERY case it's gone poorly. Initial cost savings are alluring, but you need to be on top of the over seas team every day. Everything you want needs to be documented and detailed to the point where you need a full time manager just for the outsourced team.
And the work received back was never quite on target for quality or meeting the business requirements. Everything needed to be looked over, re-factored and in some cases completely re-written.
Perhaps it's worth it it in the short run - I'd be curious to see what the long term effects are though.
Personally, I cut contact with any and all employers/clients who pursue this strategy. Why don't we outsource management overseas?
Bottom line: you get what you pay for. If you can make cheap outsourced work work for you, that's great. But I've never seen it work like the MBA's think it will.
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