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Of course you can go about outsourcing in many different ways. We've been baldy burnt with some freelancers and others have been a real blessing. I recently wrote a long history of developing an Outlook plugin here: http://24waystostart.com/2010/frog-driven-development/

I find though that nothing beats being on location with developers in the same room while working on a project. Find someone close by or at least willing to start off the project together on location.