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I live in Russia, Siberia and work for German medical company which outsources projects to us. I guess it is a bit more than outsourcing: we have shared teams between Russia and Germany, we have business trips to each other, etc.

Of course I'm subjective, but I believe we are an example of successful outsourcing: code quality and product quality is raising significantly since we started working on it.

It is a bit disappointing to be a cheap labor force, but on the other side we have a chance to work for a big company with great technology and management experience.