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I know that outsourcing for development will usually end in failure. I'm talking large software development here, not web applications. Problems with communication, cultural differences, and physical locations are insurmountable obstacles. If you're seriously thinking of outsourcing on a large scale, take a look at the case studies of other projects (I don't know if the Yahoo failures have been published, but look for those). If NDs weren't an issue, I could give examples of numerous companies that tried to save a buck and ended up losing millions on outsourcing software development.
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