Geography Matters: What Data Tells Us About Offshoring, Co-locating, and the Flat World

Has the digital revolution really made it possible to do almost anything collaboratively with people separated by time and distance? Or are decisions to split software development around the globe more about pressure to cut costs and less about tapping the intellectual capital from other nations? Countering the multi-shoring trend is a powerful new movement that looks at the forces of concentration-clustering of human creativity and talent-to claim the creativity, innovation, and productivity that can result when smart and talented people locate closely to one another. Who is right? To answer this question, Michael Mah looks at what measurement data says about offshore and co-located projects. Michael presents actual case studies from real companies and contrasts the results from the two philosophies. What you learn may challenge long-held beliefs about knowledge work, commoditizing human capital, and innovation.