Also big Indian companies extensively use near-shore in case of ‘special‘ projects. For near-shore they mean being physically next to the customer.
And how they define the term ‘special’?? With a single sentence: a project is special in presence of fast changing requirements.
But …. Mr.Friedman (The World is Flat) says that this world is going to be faster, is going to change continuously and that this is the new paradigm.
So, if ‘fast changing requirements‘ is going to be normal, off shore development is not going to work.