[cipher_system]

They try to but it's not always that easy. When you outsource you often need a lot more people to do the same work since there is more overhead. So the total cost may not be that much lower and the output is less.

Not saying this is always the case but it has been like that at my company several times. IMO IT and business need to work close together to efficiently produce quality stuff that the customers want. This is way harder if you are separated by a sucky phone line.

[codycraven]

Additionally, businesses learn after being burned a few times that throwing distant resources at software problems tends to make a bigger mess than they started with (no matter how good their PM may be). Often one good developer embedded within a domain in a company is worth more than an entire outsourced team.

I'm sure there are exceptions, but it's what I've anecdotally observed over my career to date.