I am aware of a company that owns the intellectual property of a decent software product and makes an excellent income from licensing per annum. However, the director (non technical) complains about the cost of maintaining the development team, as it eats significantly into the profit margins, and is considering outsourcing development of specific modules to other countries that charge at a lower rate.
Personally, I don't think this will be a more cost effective solution in the long term. This can lead to communication breakdowns when there are problems, additionally the specifications will need to be water tight which can end up taking taking more time anyway. In my opinion, when working in teams communication is key - or is there an effective way of making this work?
What are other peoples thoughts AND experiences on this matter?