Alessandro Perilli wrote an interesting blog post about how Novell is moving PlateSpin Recon development to India. The PlateSpin Recon development team working on the product in Toronto, Canada is very talented and this change is not likely to be well-received by members of this team. There is also a question of how the product will be managed and how Novell is planning to channel feedback from customers and partners to the product development team.

That said, a number of virtualization companies have built phenomenal teams and products with development centers offshore. Lanamark with design and development teams in Latvia, Romania and Ukraine, Parallels with development centers in Eastern Europe and VMLogix with a stellar team in Bangalore, India are good examples of such companies.