Outsourced Offshoring!?

Everyone seems to hate outsourcing, but I'm attempting to draw a distinction here. There is outsourcing which I define as "sending work outside your organization" and there is offshoring which I define as "sending work overseas". Both have some potential upsides for the organization in terms of focusing on core skills, benefiting from a larger development team than they have in house, and a variety of other aspects. Both have some potential downsides too. I'm not going into this right now. As a mISV owner, I am all for outsourcing because we couldn't exist without it. I think the jury is still out on offshoring.

I came across an article recently detailing the writer's experience visiting Singapore and Mumbai for a recent wedding and I found the whole thing fascinating.

In order to send work offshore, a certain amount of groundwork must be laid. First, the organization must be able to write a solid specification. Next, someone needs to act as an intermediary especially when the work hours are completely different. Then someone has to evaluate the work stateside. Etc, etc, etc. You get the idea.

It seems that certain offshoring destinations have faced a great deal of wage inflation due to demand for skilled people and the work is starting to move elsewhere. And it makes sense, once an organization jumps the hurdles to make offshoring work in the first place, moving it somewhere else becomes easy and nearly trivial.

Therefore, with the further expansion and improvement of global communication systems, it's impossible to predict where this work will end up going in the long term. The primary destinations at this point seem to be Pakistan, India, and China, but the Ukraine, Romainia, and more rural areas of the others are already picking up steam.

I remember reading about

I remember reading about this issue a little while ago. I think it's kind of funny and it strikes me as an eventuality. I also think it's an eventuality that the pendulum will swing the other way. Once things become too expensive in that other location/country it may be more cost effective to move it back to the home office or at least the country of origin.
Along those lines, I had a friend who recently set up a remote office for a client in Oklahoma. It's offshoring without the move to another country. All the benefits of cheap cost of living thus lower salaries but being able to keep things in a closer time zone.

I've thought of that too

Actually, I would call Oklahoma "outsourcing" not "offshoring". ;) As I noted earlier, I think this sort of thing is vital to have in order to have ISV's.

On your other point, I believe that some organizations are finding the landmines that go along with sending all their IP overseas. There are huge risks involved when you send an entire codebase/product to a country with lax or non-existant IP and property laws. It doesn't take much for someone to walk away with the code.

The same can happen here in the US, but at least you're already familiar with the legal system and culture.