[simias]

In my experience the core of the problem, regardless of outsourcing, cultural issues or other considerations, is the good old "if you pay peanuts, you get monkeys". Good software engineers are highly coveted wherever they are. If you attempt to outsource work to a country with much lower wages in order to save money you're not going to get the local rockstars working for you.

Those outsourced teams are also aware of their status as "disposable cheap workforce" and are not super invested in the project. They have very little chance of career growth within the company since their whole reason to be here is to be cheap. They do the bare minimum to meet the objectives and nothing more, and in their place I'd probably do the exact same thing.