30 Jul 2004
Software offshoring: Big savings, quality concerns

Well, doh!

Companies can save thousands of dollars by outsourcing the development of custom-software projects to low-cost, offshore locations such as India and China, say researchers. In a new study, thye estimate the average annual decline in quality-adjusted price for software projects developed offshore is about 14 percent---or $56,000 per project. However, there are tradeoffs between the low prices customers enjoy and the potential for increased dissatisfaction due to greater uncertainties associated with distributed development.

(link) [Science Blog]

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