I just came across this interesting article describing how Indian companies, providing offshore software development, are now hiring skilled staff in the US. They are finding, on a large scale, that you have to carefully apportion work between onshore and offshore teams, and be aware that for many project all the work should be onshore.
http://www.siliconvalley.com/news/ci_18625774
In Dovetail we have experience working with off-shore teams, and we know when it works. As Michael Murphy says in the article:
"The closer you get to true knowledge work, where experience and judgment is required, the closer you need to be to customers."
That's just what Dovetail does: providing that experience and judgement. Several times we have been asked to (and did!) rescue projects that were sent offshore and foundered. It's just part of the comprehensive range of services we offer related to custom software development projects.