We outsource successfully. But we have a 1 on 1 relationship with each developer outside our company. So no fooling us about whom it is doing the work.
It takes real work to manage any developer. Its an illusion to think outsourcing solve all the problems. We think of it as simply a recruitment tool really. Not that we hire all the developers we work with. But the outsourcing company is only there to bring in talent as needed. That talent still needs to be managed.
>But we have a 1 on 1 relationship with each developer outside our company
This is the main issue. Not whether the outsourcing is done to India, the Philippines, or even in the US. The model of shipping off your large projects to another company is going to be very problematic.
One on one relations with a good developer are going to be the way to go. A lot of smaller startups that outsource do this.
It takes real work to manage any developer. Its an illusion to think outsourcing solve all the problems. We think of it as simply a recruitment tool really. Not that we hire all the developers we work with. But the outsourcing company is only there to bring in talent as needed. That talent still needs to be managed.