I have been saying this for awhile now, but facts are sexy.

The Outsourcing Low Cost Lie | Lessons of Failure

# Nearly 50% of outsourced projects fail outright, or fail to meet expectations # 76% of companies said that vendor management effort and costs were much higher than expected # 30% reported ongoing issues with outsourcer management processes (e.g., inadequate governance and conflict resolution procedures) # 51% reported that outsourcer was not performing to expectations

That might sound like a reasonable number, but consider that first point more closely: Nearly 50% of all outsourced projects fail outright or fail to meet expectations in the first place. Essentially, you’re taking the same gamble as red vs. black in Roulette about your project’s success right off the bat, and only then if you pass that hurdle, you’ll get on average, 25% savings over having it done locally.