I just linked to a document that says it is true. It is an scholarly article that has been peer reviewed. As well, the cost of living of a developer is irrelev

I just linked to a document that says it is true. It is an scholarly article that has been peer reviewed. As well, the cost of living of a developer is irrelevant as documented in the paper. The additional overhead of hiring managers and technical / business experts offsets any reduction is cost due to cost of living that one perceives as a savings. These are the hidden costs that the papers speaks directly too. Sure you can, roll the dice on elance or one of the other freelancing board, work directly with a developer and hope that they get it right, but if a company don't hire project managers to ensure the project hits every micro-milestone and business analyst to document the requirements in extreme detail then that company significantly increases their risk profile. That is the crux of the issue, you get the development work for cheaper but you offset the savings with additional project management and analyst costs because outsourcing causes more oversight and management.