This is an excellent article of expectations and realities of offshore outsourcing.  Here is my own interpretations on some of the myths that are presented:

a.) you cannot have it all.  You can’t have cost reductions, improvement in service, plus flexibility all thrown in.  Such would be too big an expectation.

b.) Getting the right partner matters - and a good partner may not be the cheapest.

c.) Too detaild or too lax contracts won’t work.

d.) YOu cannot ask your vendor to take on unlimited indemnities for failure.  In short, outsourcing does not abdicate you the responsibilities or the headache.

If it doesn’t work the first time, try and try again!

Seven Myths About Outsourcing - WSJ.com

In recent years, there’s been a seemingly endless boom in offshore outsourcing. But companies that think handing off an operation to an overseas provider is easy can get a rude awakening.

The transition often proves to be much more costly and complicated than expected. And companies often find that their high hopes about cost savings and greater efficiency don’t pan out.