Some more food for thought about the economics of business process outsourcing: A report just out of Datamonitor
argues that speech-enabled self-service technology may be a better value proposition than using offshore call center agents for low-level transactions. The report estimates that a company can save 25% to 35% per transaction using speech-enabled self-service solutions versus using a call center in an offshore location.
That being said, I'd like to see a study on the true costs of offshore outsourcing of IT development, versus internal development using new tools and techniques, such as Web services frameworks and reusable components. My bet is potential improvements in developer productivity here may level the playing field with offshoring over the long run.