I have been involved in various outsourcing initiatives over the course of the past two years. The concentration have been in Bangalore , India where I have visited 6 times helping to setup teams concentrating in Search and Web Portal development.
I have been impressed (though not surprised) with the level of sophistication, technical competence and drive of the individuals I hae interacted with during my various stints in India.
There are a number of challenges that are fixed with respect to outsourcing in India. The almost 8,500 mile distance between the Eastern USA and India and the 10.5 hour time differential. Though those obstacles can be overcome to an extent through various techniques, they are still immutable and present a fixed cost that chip away at the cost differential between USA and India based software engineers. For those primary reasons I am investigating outsourcing options closer to home.
BusinessWeek Outsourcing Article

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