[Clubber]

I struggled with this a lot too. I came to the conclusion that an offshore developer who as good as a good onshore developer costs about the same, just due to supply and demand, so it's a wash. If a company can't find or retain talent, hiring a not great developer offshore is cheaper than hiring a not great developer onshore. It's an "I give up" strategy; you can build the same mediocre, buggy crap cheaper offshore. Plus, off shore sales people are very good and promise the world. Many traditional executives are gullible when it comes to technology, but they're pretty good at turd polishing, so that's also part of it too. I also think OpEx vs CapEx accounting has a lot to do with it as well.