it makes a few quarters look good financially due to less cost but a large project that had been largely outsourced for my company (fortune 500) tanked and it cost a few VP's their jobs.
The key problem is lack of communication...as anyone knows it is hard enough to foster communication within an old fashioned office..mix that in with a bunch of people in a different time zone who you can not communicate with as well....and disaster reigns down.
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