[plinkplonk]

As an Indian living in Bangalore, I feel odd saying this, since I know that the myth of the "substandard outsourced coder" is largely just that - a myth IF you know what you are doing, but that said, but do not use sites like rentacoder or try to save money by outsourcing unless you personally know someone good.

Find out the market rates for a good developer in your area and pay a decent wage commensurate with the time taken to write good software (2500 $ isn't much even here in Bangalore, I think the guys is just taking you for a ride, unless the software is very simple in which case it can be rewritten trivially) .

Try to meet up with the developer every 3 or 4 days (or at least talk on the phone) and as someone mentioned here, own the repository he checks into.

Good Luck!