Here's my hypothesis on outsourcing: the best people (no matter where they live) are hired locally, so if you aren't hiring locally, you're not hiring the best people.  If you have prolonged experience with outsourcing, you'll notice that the better performers disappear after a while - they are being hired by someone local to them.  On top of hiring the people who cannot otherwise find a good job, they might not speak your language well or at all, they are awake different hours of the day, and you are limited to communicating via telephone and webcam.<p>I find this idea of PDI particularly distasteful because (a) there is no hard evidence so far, and (b) it makes "us" look better.  History shows that people believe a lot of dumb things when those things make them look morally superior.