Doubts over business benefits of offshoring
The bank I work at has been exploring the offshoring to
Costs of actual offshoring have been hidden as costs under other expenses on balance sheets or are being picked up by other projects with only local resources. When projects do come in late or over budget, they are marketed as being successful because of the need for handover periods.
Truly offshored resources are in fact cheaper than local contractors. However, for every local contractor replaced, it results in two to three offshored employees to pick up the work. Offshoring does have its time and place, but I do not feel it should be for the entire IT function.