My big beef about outsourcing is that there is a huge separation between the people requesting the system and the people delivering the system.
If you work within a company then there is more of a vested interest in thrashing out the requirements. My personal experience is that the people requesting a system have trouble specifying exactly what they want. People producing the system have trouble understanding the business requirement. People managing the project to produce the system fall between these two stools.
Just as if this wasn't enough lets throw into the mix.
I've worked with some large blue-chip companies and with one or two exceptions I haven't seen the conspicuous talent necessary to make outsourcing a better option than what is in place already.
As far as I am concerned it is a means of getting the same old stuff at cheaper rates.
This is not to say that oursourced programmers are any better or worse than home grown talent.