Why Software Outsourcing Doesn't Work  Anymore
I would say it never really <i>has</i> worked; there is no "anymore".<p>One problem in outsourcing is the thinking that programmers are somehow easily replaced; the "just find 'a' developer" idea, with little to no thought put into whether it may matter if the chosen team has any idea what they're doing.  Two anecdotes.  Years ago I was given such a team, to maintain a system primarily written in two different languages; the manager in charge gave me two guys from the other side of the world who were to be "taking over" the project despite <i>not knowing how to program in either language</i>, and there was no arguing this point.  On another project, a resource from far away was graciously donated to me to help with a C++ project; I later realized he had chosen to recreate several container classes in C++ as if he'd never heard of the STL.<p>Another problem is the fundamental misunderstanding of culture.  Managers in the U.S. seem surprised when they encounter wildly different behaviors overseas (gee, it's almost as if they had hired someone from a completely different part of the world!).  For instance, I have encountered remote groups that are <i>astoundingly</i> good at self-preservation, who will basically change their minds and do whatever they want at the last minute to prop up their team at the expense of your project.  Individuals, too, may have side projects that they care about much more than anything you have asked them to do.