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I have seen a recent survey on this topic. Close to 50% are outsourcing programming. What is the situation for your organisation?
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We are not outsourcing.
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It depends on the work. It can be cheaper, if you have work that people overseas are able/willing to do for less money. On the other hand, there is also work that the people overseas can't do.
The big attraction of outsourcing is there are a lot of people who are trying to get hired as programmers who have no problem-solving skills. As a result, they can't solve basic programming problems in a timely manner.
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We are not outsourcing and it really is only cost effective if you are a massive organization employing hundreds to thousands of employees, like banks, credit card companies, etc.
Also, for smaller companies it is just more productive to be able to work one on one and in person with the employee actually on site.
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