The company boasts of being a family, and in many ways they try to behave this way: defined benefit retirement plans are the most extreme example of this.
When the family grows, conflicts flare up. The defined benefits, for instance, survived for many years but eventually had to be terminated.
Advice to Management
There is only so much development you can offshore before you lose control. There is loss of lore when long-employed people leave, and hiring replacements offshore does not always work, however technically good the new hires are.
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