In my experience successful outsourcing is about the situation, the task, and the bandwidth to engage, not about which country is cheapest. None the less, I found this chart on rates by country very interesting.(Though dont forget that it came from a Tier 2 Indian company.)

In my experience with Indian and Russian outsourcing groups the rates seem about right. They all seem to be crawling up as that countries outsource market matures.

So to make HUGE generalizations (which are obviously a great idea) I personally have found Russian developers more consistently talented than their more variable Indian counterparts. The trick though isn’t where or how much. Its about engagement. The deeper the engagement the more likely it is to be successful.

The other trick is doing projects that you won’t need to live with for years and years and years. Outsourcing core technology and not having those resources as close as possible never ends well. That excludes many projects in my mind as any successful software will need to be maintained and improved or it dies.


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