Outsourcing- a perspective

One of the key reasons for out sourcing software jobs by Bay Area Companies to lower wage geographies is obvious reason. If this "lower wage" is removed from the equation, what else remains....

1. Move the work to people instead of moving people to work. (India & China churns out more people and with appropriate skills - as compared to what can be accomplished in the Bay Area)
2. Using contractor versus employees give flexibility in down sizing with no/little labor department intervention
3. Take advantage of "follow the sun" development model
4. Deal with labor laws




1. No flexibility on pay day for employee. Contractors payment can be delayed with no/little impact
2. Hiring/firing with little / no cost
3. Avoid dealing with immigration related risks




5. We had one Chinese company who was able to provide additional 3 resource for 2 week - with zero lead time for hiring/learning



6. Less resource needed
1. Office space
2. User equipments (IT management)