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  • Mathias Sulser thinks this is interesting:

When a software company outsources development, that company loses its capacity to innovate and its competitive advantage.

This isn't because Indian programmers are less skilled or less creative than programmers elsewhere. Outsourcing hurts innovation when people aren't able to communicate frequently and casually. Frequent and casual conversations are impossible across nine time zones.6 Innovation is also sacrificed when the programmers who are making discoveries and thinking of new ideas for your software aren't around for the long term because they don't work for you. It doesn't matter where your company is based...


This is a very interesting take on outsourcing and innovation. It also describes nicely that it doesn't matter where or to whom you outsource - simply the fact that you make communication more difficult and take away the long-term perspective makes innovation so much more difficult.