I've worked with developers in 4 countries so far, including India, and I've learned two things. (1) you have good developers everywhere, the challenge is findi

I've worked with developers in 4 countries so far, including India, and I've learned two things. (1) you have good developers everywhere, the challenge is finding and hiring them, and (2) there are only two efficient org structures for developing a codebase, everyone in the same location (optimizing for face to face) or everyone remote (optimizing for online communication). Most shops end up setting up a remote unit outsourcing a particular set of tasks (e.g. maintenance, or a particular module), and that's a recipe for disaster because you end up with an extremely inefficient communication structure (blend of face to face and online, no one actually knows what's going on, yet everyone spends the whole day communicating). The thing I've noticed about hiring in India is that due to the economic circumstances a lot more people go into software development who have no business being there. You can find good developers, but you have to weed out many more bad candidates to get to them.