The Offshoring Digest has
an interesting post on small and startup businesses using offshoring. I've contemplated using offshoring to kick start a company in the past. I even went as far as to contact some to get quotes for a pool of developers. I found the offshoring consultants to be too difficult to work with in a startup phase of a company. They require structure -- at least the ones I was talking to -- that does not exist in a startup. They also seemed to be unwilling to share in the potential success of the new venture, which is both good and bad. The discussions became a catch-22. They didn't want to provide estimates for their services unless I had VC funding, yet I couldn't get VC funding without providing the VC's with complete financials. I finally just dropped the whole idea and have been sitting on the company since.