Global labor arbitrage, in other words, is a specialist in eliminating economic barriers and facilitating the hiring of countries with lower labor costs. It is not surprising that outsourcing abroad between British and American entrepreneurs has become a common practice. Of course, if you do not care about prices, there are almost no other benefits to outsourcing this work to third world countries.
On the other hand, it can sometimes be difficult to compare labor costs. The problem is that you should consider the additional time and money you need to invest to manage and plan outsourcing projects. It is a classic mistake when business owners think that hourly rates say everything they need, so that the costs more explicit, but not the additional costs that offshore outsourcing software development always involves. Recent statistics show that more than 60% of companies employing foreign outsourcing developers are expected to have much lower costs.
One less obvious benefit of outsourcing software development is that it is possible to hire experts to work on your project without having to make a long term commitment that usually leads to related costs. To add more, you may now need someone with a specific skill, and over time, you may need a specialist focused on different technologies.
Large offices with open spaces and lounge areas can distract development teams. Lunch time, breaks, games, chat with co-workers, etc. All of this reduces the amount of time spent on software development, which is why outsourcing experts can do the same work more efficiently than their colleagues. Office distraction can also mean spending more time at work to do the day-to-day work that can detract from corporate culture and employee motivation.