GameBizBlog reports that a new study from development consulting firm Beriah suggests outsourcing game development isn't always the best option. The report seems to center on the UK, noting that low salaries for developers in certain territories don't necessarily translate to dramatic savings. As a theoretical example, the report stats that an outsourced UK project should expect only a 19% savings, even with outsourced salaries only one-fifth to one-half of a typical UK developer.
The best ways to really save money, according to the report, are good partnerships and smart management. The report states that "most UK teams" could save 30-50% off development costs "if they choose to." Unsurprisingly, Beriah uses the report to pump itself up, noting that the most money it has saved for a client is 68%.
The one cost cutting measure seemingly neglected by the report: Layoffs.