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To: Les H who wrote (10690)	5/15/2003 6:04:02 PM
From: Lizzie Tudor	Respond to of 306849

ah, well if you are looking at billable rates, consultants and the like then 100K per year is probably low. But then you aren't looking at 10K/year for indian workers either, it is higher. If I had to guess, I would say it costs between 1/3 to 1/2 as much to offshore a task vs. doing it in the US, the range being contingent on how much business analysis is involved. If it is a pure techie task, say redistributing an application across multiple instances which is currently working, then it can be done for 1/3 the cost of doing it locally if you outsource, just a guess. If there is business involved then it costs half as much. But- here is the caviat- if you outsource something from the second case above, there is always the chance what you get back is not what you really need to satisfy whatever requirement exists, and then you've wasted your money and its a 100% wash. OR, you are working towards a moving target and time to market is key- outsourcing won't work then. OR, you are working with a portion of your business that is a competitive advantange. Outsourcing won't work. Really this isn't too much different than the manufacturing outsourcing issues that came up in the 80s. Remember when US companies overdid it and somce companies like Schwinn ended up going under because they overdid it with the outsourcing.