Outsourcing from an American manager who's been there and done that
Heard on Ryze's Web Design & Hosting board (OUTSOURCING - Problems I experienced and some thoughts...):
People do it because it's cheap, and who doesn't want a great deal.
With proper pre-planning, and project management we realized costs
savings in the 15% - 30% range. If you just throw a project offshore,
sure you can cut your costs in half, but you'll get what you pay for.
And again, it is very hard to get offshore programmers with the
contextual knowledge of your business. Things work better if you
already have the higher level software architectures built and farm
out the grunt work.