[AmberShah]

I've seen plenty of companies with as large as you describe and they just have their projects fail even bigger. I know of one that went on for 2 years with a team of who knows how many (for a very large, very well known company) that got canceled completely last year. Many more examples where that came from.

I also don't see how the argument is specific to India. I realize that you're only stating what you know, but it sounds awfully similar to the US in terms of reasoning. The best and the brightest all want to make the most money, so they go work for the biggest companies, right? Except it doesn't actually pan out that way in real life. Actually, money is a surprisingly bad motivator for behavior.

Unfortunately, I don't think this post explains WHY outsourcing fails again and again and again, whether big or small.