Studies have shown the cost benefits of outsourcing to overseas countries are substantial providing up to a 75% according to some estimates. While the benefits are significant, there are many risks involved.

Some studies have also shown that while savings may seem dramatic much of these benefits have been negated by prolonged development efforts due to delays in communication as consequence to large time zone and cultural differences in addition to other incurred costs such as travel and the need for Bridge Management.

As time progresses services rates for overseas countries are steadily increasing due to rising costs of production. As a result true cost benefits have declined to below 30% according to some estimates.

As a consequence to these issues, the many in the US market have been steadily looking for more viable solutions by seeking resources elsewhere in countries such as Mexico, Argentina and Brazil. These countries offer further appeal in their globalization models as a result of inherent advantages stemming from geographical positioning, time zone, cultural similarities and struggling economies.