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We're in what I'll call the third wave of offshoring now. There are pockets of offshore developers who are actually interchangeable with US-based teams; but the
by wayoutthere 6y ago
We're in what I'll call the third wave of offshoring now. There are pockets of offshore developers who are actually interchangeable with US-based teams; but the cost difference is more like 25-50% less than the previous waves that were promising 90% cost savings.
My last company ended up outsourcing from Mexico, Colombia, Uruguay and Argentina with good results. We often didn't tell clients they were offshore and billed US rates for them and pocketed the difference. Over the course of about 5 years we had let go our US-based teams because they were just too difficult to hire and retain for the marginal increase in quality.
- frockington1 6y agoHow did you decide which clients could use offshore labor? If you did that in financial or defense industries you could be opening yourself up to significant legal liability
- novok 6y agoFortunately, the vast majority of clients are not in those industries!
- wayoutthere 6y agoIt's usually spelled out in the terms of an MSA. You're right, there are plenty of companies you can't offshore work for, and they'll make sure that language is in your MSA. Bill rates adjust accordingly.