1.reduced development cost 2.leveraging time zone effectiveness 3.access to large skilled labor pool 4.closer proximity to customer and market 5.innovation and shared best practice 6.improved resource allocation

1.loss of knowledge within the product 2.temporary productivity decrease 3.temporal decrease in quality 4.initial reduction in scope of delivery 5.lack of co-located expertise of all system’s domains 6.prolongation of experts from original site for solving the problem 7.demand of more detailed requirements specification 8.increasing product entropy/complexity; technical degradation