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The big difference I found between having local or remote developers, was if there is a real sticking point in the development (or even test phase) and there are differences or misunderstandings in the specs (it will always happen), it is far easier to jump in a cab and go sit down next to the developer, and nut out the issue. Sometimes that face to face contact can save heaps of time and rewrites. Sometimes a diagram or walk through of the process with the ability to just ask the dumb questions as you go. And yes I know we have skype and other communications method, but face to face always wins in real tricky situations.