The benefits of off-shoring any kind of development are clear - lower costs. However, it's the potential drawbacks that turn many away from off-shoring apps development, the complexities of dealing with foreign cultures from afar, the lack of hands-on control, communicating with individuals for whom English isn't their first language and, regrettably, the risk of coming a cropper due to fraudsters.
It's a shame that these drawbacks exist though as apps development lends itself to off-shoring quite nicely. I think it can still work, and the low cost benefits can be realised, if it's managed in the right way. What's needed is a middle man, a company that is based in the UK and has a knowledge of UK industry, culture and language. They would deal with clients to gather requirements and draw up storyboards and requirement documents. The middle man would then suffer the pains of dealing with off shore development houses, delivering an end product to the UK based client. If UK clients knew they could deal with a UK based, English speaking designer then surely they wouldn't care where the software was actually written.
Of course, the middle man would add a layer of cost, but the total overall cost would still be attractive enough.
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