offshoring

Offshoring is a practice where companies pay foreign workers 1/3 the pay for work (such as software development). What compaines fail to understand is that it takes the offshore workers 4 times as long to perform their work, and the resulting product is sub-par at best.

Local programmer makes $60.00 / hour.

The company decides to use offshoring to send the work to India for $20.00 / hour.

Instead of taking 8 hours to write a program locally (for a total of $480.00) they offshore the work and it takes 32 hours (for a total of $640.00) and the resulting program has text like:
"For more instruction be to clicking the yes button."

Pay more, get worse products, and take longer to get it done.