[test001only]

I do agree with some of your points but looks like outsourcing industry is the favorite scapegoat these days for any failure. From other anecdotes in this comment section, various other reason are being thrown around for BA repeatedly having IT failure. So without any proper analysis it would be premature to conclude one way or the other.

[tyingq]

It doesn't specifically have to be outsourcing. Just the massive change associated with it. Take something mediocre, and try to run it somewhere else, and it's worse. Similar outcome to moving it across the country with a different set of "locals".