Offshored development can be more expensive
- Cost of managing a remote team.
- Communication overheads.
- Cultural differences.
- The US has a wide and solid social base and knowledge in technology. There is a community with a large enough number of people who have "been there done that". This is something that is built over many generations, not a few years.
- The economics keep changing, programmers in China and India are earning more. Beijing is more expensive than most cities in the US. The dollar is declining.
I keep hearing over the last 10-20 years how off-shoring will eliminate the software industry in the western world but demand for software developers is high. As technology keeps getting more complex and new technologies arise the need for good software developers grows larger than the growth in the number of (good) software developers - at least that is the trend.
Until the day when computers can program themselves I wouldn't worry about this point. However, consider whether this is the career for you from other perspectives.
BLS Job Outlook, 2010-2011 edition
Employment change. Overall, employment
of computer software engineers and
computer programmers is projected to
increase by 21 percent from 2008 to
2018, much faster than the average for
all occupations. This will be the
result of rapid growth among computer
software engineers, as employment of
computer programmers is expected to
As a result of rapid employment growth
over the 2008 to 2018 decade, job
prospects for computer software
engineers should be excellent. Those
with practical experience and at least
a bachelor's degree in a
computer-related field should have the
OECD, July 2007: Offshoring and Employment: Trends and Impacts
The impact of offshoring on the labour
market has become one of the major
issues of concern to policy makers and
public opinion. The phenomenon of
offshoring is not really new, but it
arouses just as much debate and
concern because it is no longer
confined to the manufacturing industry
and low skills but now involves
services themselves, particularly
those to business. More recently the
jobs affected by recent offshoring
also involve more highly skilled jobs.
The Economics of Offshoring in the Software Industry - recommended reading
INFORMATION TECHNOLOGY OUTSOURCING: THE MOVE TOWARDS OFFSHORING
All this activity has pushed offshore
outsourcing into the limelight
recently – unfortunately, not always
in a positive vein. The dot-com bust
and the resulting loss of jobs
intensified the concerns about loss of
domestic jobs to foreigners and
fuelled public sentiment against
outsourcing, particularly in this
election year – 2004.