Spot on, man. The previous company I worked for outsourced development and attempted to outsource IT operations (this was a laughable, pathetic plan which fell apart when they realized just how much work the IT operations department was doing). Our experience with the development outsourcing/off-shoring was terrible, and can accurately be described by every one of your statements (except for the one about when engineers show up which isn't applicable). Shortly before I left, they were beginning the process of "in-sourcing" everything.
I will add this warning to your statement:
- Problems will RARELY be fixed permanently, which will add MORE inconvenience and cost to your operations. Because they will charge for *everything* they do, their financial motivation will be to provide more temporary "solutions" rather than lasting ones.
- They SHALL NOT, WILL NOT, and CAN NOT "think outside the box" to develop creative and innovative solutions to your needs and future plans. Their financial incentive will be to kludge together an inefficient and bug-riddled system which can be thrown together with the fewest of their resources as possible. The documentation and training on how to service this system will be INCOMPLETE and BRIEF. If you try to direct the project yourself, you WILL hear the phrase "we don't do that" very often, and you WILL find yourself paying astronomical costs for the project.
- Come contract renegotiation time, when all of your experienced, knowledgeable IT staff is working for them (rather whoever is left after the inevitable lay-offs and benefits/wage cuts that they will impose on your former staff a few months after they assume your operations), THEY WILL RAKE YOU OVER THE COALS.
SHAREHOLDERS BEWARE: The outsourcing company will often make an "under the table" deal to BRIBE EXECUTIVE STAFF into agreeing to the outsourcing deal. As such, your company's executives may not be acting in the best interests of your company.
EXECUTIVES BEWARE: If part of the bribe includes a cushy, high paying "do nothing" job with the outsourcing company after the deal goes through, YOU WILL BE MADE REDUNDANT BEFORE THE YEAR IS OUT. I've personally seen this happen not once, but *twice* to former managers at my previous company.
P.S. for those who think I may bitter from the outsourcing deal at my previous employer, I left of my own accord to pursue higher education. My department was not one of those that was considered for outsourcing, so my job was never directly threatened. I actually remained on staff with the company for several years after the outsourcing deal was made, and the above is based on my observations and experiences working with the outsourcing company (who is one of the major applications development off-shoring and outsourcing companies, I might add)