Competition for competent staff in countries like India is intense. The environment is similar to what U.S. experienced during the Internet boom, when it was very difficult to attract and retain good talent.
Many companies are finding that high turnover in their offshore team is creating disappointing results. You’ve invested valuable U.S. staff time to train your offshore team and put in a lot of hard work to do trial runs. When several months have passed, you conclude that your offshore team understands your issues, so you reassign and/or remove staff at your U.S. location. After all, you cannot afford to duplicate staff forever! But not long after you make this move, you learn that the key staff members and/or team leads dedicated to your offshore effort have left the offshore team! Although the offshore organization says that they are addressing the situation and there’s no need for you to be concerned, you realize that there is no way that they can meet your needs without investing additional resources from head-quarters. And you doubt that such resources are available.
