More than a decade on, and much of this is still relevant. Can we get those on top to read this?
"Eight Reasons Why Outsourcing to India Could Hurt Your Business"
https://www.cio.com/article/2437890/offshoring/eight-reasons-why-outsourcing-to-india-could-hurt-your-business.html
Most work is grunt work that can be done by lower quality engineers.
at least 75% of the engineers getting the outsourced jobs are of notably lower quality than their U.S. peers, including H1Bs in the U.S. Witnessed this first-hand at Intel for many many years, in design, SOC design, tech support, and more.
You can keep the H1Bs out of USA but you can't stop the outsourcing of jobs. All companies in USA or outside that are trying to survive in the market with competitors like the Chinese will have not choice but to outsource to those who can do it cheaper and better. In the end, those countries that are considered high cost are pretty much screwed. This is the new reality and no one can stop it, so better tell your kids to pay attention in school especially in math and science. They have many young Chinese competitors who can now speak English. And parents better start saving up for college cause the tuition and living cost can be well over 50K cash easily. Just think, you put in 50K of your hard earned money into your kids college education and your kid ends up with 2.5 GPA. The Chinese are going to eat our kids.
Overseas labor seems much less expensive initially. However, it is often much more expensive for the long hauls particularly with regard to design, detailing, specification, and customization.
Language and culture make precise and effective communication overseas undependable.
Security of proprietary information becomes problematic.
Low wages may go up quickly, somewhat obviating the original reason for outsourcing.
There are none of the non-quantifiable advantages of collegiality, proximity, and communal creativity.
Expenses can be great to supervise overseas operations and manage complex foreign tax issues.
Outsourced workers have no incentive to look for efficiency.
Legal documents won't protect you. NDAs mean nothing overseas according to the FBI.