Productivity Loss

For every three engineers in India, expect the output of two US-based engineers. There are plenty of great engineers the world over and particularly in India, but most of the people your outsourcing vendor will attract (and retain) will be entry level people with modest skills.

India’s outsourcing industry has boomed and this has resulted in a shortage of experienced engineers.

Another source of productivity loss is the overhead in communications between teams which must be formalized to be effective. It requires extra time to prepare documents and slides that would not be necessary were they able to communicate often, throughout the day.

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