Off-shoring in IT

I saw an interesting interview on Z-tv today about off-shoring of it services. It was not as much the interview per se that was interesting, but the company portrayed, had a large video wall showing their off-shore workers in their office.

Well working ? One employee, prominently visible on the video-wall was bent over a set of listings without nearly moving.

Complicated, complicated, take a nap. Study the listing - take a nap...

Off-shoring can look cheap, but is it really?   How about productivity and efficiency (with the language barrier I would estimate you already loose 50% of the efficiency and productivity.)