simulate writes "There have been several postings about outsourcing and offshoring in the past few weeks. Is outsourcing just a fad? In Outsourcing Programmers is Bad Strategy for Software Companies author Michael Bean compares offshoring to the enthusiasm for Internet startups in the Nineties. He claims that outsourcing programmers is bad for companies not because of the programmer layoffs, but because technology companies lose their capacity to innovate. Offshoring is a mistake when technology companies confuse operational effectiveness and strategy." I don't think the comparasion to Dot Bombs is entirely accurate - the trend to globalization overall has been going on for decades. Still interesting piece.