I was reading an article this morning and though on face value I pretty much agree with the article.  Click Here 

I must say I personally have some serious questions about trusting your business to this type of development, or for that matter even a call center.

On the the projects you want developed off shore. I have but a couple of questions here. A small company in Phoenix AZ SmarterTools has developed a three outstanding apps SmarterMail, SmarterStats, and Smarter Tickets.  Now the point here is if someone is a good code writer. We all know the need for good applications are really high. Why then are none of these applications coming out of India, and Eastern Block countries?

For them, a software company in any third world country. It makes more sense to simple write a few good apps than to do web development for small, medium and large companies? After all everyone within their organization is familar with the code and can do some level of support for it. My guess is that likely their software would prove their capabilities and likely most would not fair well.

I honestly start to wonder if by working beneath the wire so to speak. They can easily leave any back door or questionable security problem exposed. I am not saying that this might be the intent. However, working with people you know would never know where to look kind of opens the ignorant hiring people only based on the dollar bid. This is  simply not the right approach.

I have to say this if India or any third world country is good they will create the applications themself and sell them. A great place to start would be in my opinion a Low cost CMS system. Just a few searches on the web will show you how expensive something like this is if done properly. Look how long and how many companies have been created simply for a shopping cart application. There are so many to chose from today it is almost confusing. Seems logical to me that this level of competition can be focused on more than just a shopping cart.