In 2006, the April + May issue of interactions was dedicated to the topic of offshoring. At the time, the term "offshoring" referred to moving work to low-cost locations, despite any negative connotations. This description of offshoring no longer accurately reflects how work moves around the world from one location to another. These days, projects are more often staffed based on the availability of creative talent, not just cost. For example, when one of the authors made his first business trip to Bangalore in 1988, the labor exchange rate was 22 engineers in India for one in Silicon Valley. Today the rate is in the range of two to three engineers in India to one locally. Despite this unfavorable pricing trend, the flow of work toward India continues to accelerate, thus illustrating there are factors other than cost that affect globalization.
展开▼