Offshoring Bubble

The offshoring trend has developed into a huge bubble.

Companies are outsourcing/offshoring because everyone else is, often defying logic and common sense.

Don't get me wrong; I'm NOT anti-outsourcing, whether offshore or not, when it makes sense. In particular I believe there are many opportunities for cost cutting through offshoring if done intelligently and effectively. Unfortunately offshoring is often not well thought out.

Offshore typically involves another layer of management - the "offshore" management to manage the offshore workers. That costs money, and often more importantly this additional layer of bureaucracy reduces flexibility and creativity. That's simply a side effect of more bureaucracy.

Cost saving? Sometimes - but often there are not believable (if any) metrics to justify offshoring as a cost cutting measure.

Offshoring because everyone else is doing it is simply moronic, although often the primary reason!!