Eye on IT - Video From a Panel That Has Tried Off-Shoring
Take the following link Information resources for IT professionals - ZDNet to see some video from The Sand Hill Group's Software 2004 Conference. It's a video clip that lasts about 45 minutes. A couple of key take homes:

a panel of senior executives share their experiences and warn that the total costs of ownership can be higher than expected.

"Offshoring" is described as complicated and riddled with pitfalls.

Yep, I can see why "good" software companies are in such a hurry to do this!