lots of companies do it. there is real talent overseas. on the other hand, it sucks for developers trying to compete in the US. I recently interviewed at Charles Schwab with dev ops and they outsource 60% of their dev team. when should a company outsource? when should they stop once they've started?
The only way to stop outsourcing is to bring them in as immigrants. They will get the jobs anyway. The only difference is where they live and which government they pay taxes to.
Sure there are exceptional people overseas, but I don't have the feeling they have many companies that operate as well as here. I worked with some overseas people back when I was at MSFT. The quality of what they produced was well below what Redmond could do. That been said, I think is just a matter of time, my hope is that I can retire before this affects me.
I am outsourced from India so technically outsourcing is obsolete
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Avoid teams with only Chinese or Indians especially with a Chinese/Indian manager
In a globalized world, it's a hard one to avoid. I hated outsourcing until I made a company and clients wouldn't pay the value of a product. I had to outsource since local talent wouldn't work for the required wage, and not even get a profit. Yet some companies abuse and even with good profits and capacity to hire local talent they outsource. Still learning in this one. I do my best always to hire as many local guys and not outsource as much.