Even if you could completely overcome the productivity loss with infrastructure investments (you can't, but you can come close) the additional cost would be significant.
Unfortunately, global sourcing means that some of those dispersed resources come at a lot lower cost than the local resources. So we have to ask ourselves if the (real) loss in productivity, plus the (real) additional cost of communication and collaboration, is offset by these lower costs.
To answer this requires us to look a lot deeper at the changing performance you get over time as dispersed teams get used to working together and the absolute difference in cost and productivity that occurs.
This article was originally published on 02-08-2006