Lack of ownership in offshore development centers: Its effect on productivity

The cost savings from offshoring according to numerous reports could be anywhere between 10% and 70%. Only in the last one year, the early adaptors of offshoring are starting to look at the actual cost savings achieved by their offshoring efforts. The results have not come out yet, but there are clear indicators that the most critical factor that influences the cost savings is the productivity of the offshore teams and not the differential in the labor rates between different countries.

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