>>
>>You don't have to use the cloud. you can always set up a source control server on your network and avoid the cloud fees and possible cloud or internet disruptions (for you locally anyway).
>>
>>I use TFS2010 on my network. Works great and allows web access. Not a difficult install either.
>
>The reason I mentioned cloud is that I would need to share the source (or rather he would share with me) with the off-shore developer.
>Thank you.

You can do that. It's built-in.