Outsourcing reminds me of Danegeld...
In that you pay lots of money for something that's meant to be a one-off (maurading vikings or a new platform), but inevitably, you find that you have to keep out paying more.
Outsourcing a project can work well when you're dealing with something relatively immutable - a new phone system, a new building - something which will sit there and Just Work after completion.
Software by definition is mutable, especially these days when you're often integrating with external systems which are subject to change according to someone else's whims and priorities.
Fundamentally, if you find yourself using outsourcers on a long-term basis, then you're generally better bringing the process in-house. It may cost more on paper, but it gives you a lot more flexibility and facilitates better support and change processes - no more arguing over what's covered by the contract!
Biting the hand that feeds IT
