But offshoring is cheap!
Last year my employer decided (likely by way of comparing nothing more than 2 day rate numbers) that we should immediately and without review move our expensive London development more to the offshore facility. After spending a lot of money to set the offshore team up and train them, it became apparent that they were operating at only around 40% of the efficiency of the team they replaced due to low skill/experience levels and poor code quality having to be reviewed or reworked on shore.
Company subsequently realised we were breaching huge numbers of contracts because use of the development servers potentially gave the off shore team access to certain data that was not permitted to be processed outside Europe. Solution? This team have now been flown to London where they are currently living in hotels so they can do their jobs without breaching the contracts until we can segregate the data sets (at significant expense) in a way that allows them to return home and work.
Estimated *additional* cost of this venture to date, compared with not bothering to offshore at all is somewhere North of £200k probably rising to £300k before the day rate savings even start to compensate for the loss of efficiency. In 10 or 15 years it could even out. Maybe.
Senior finance manager responsible for this insanity was promoted, obviously, because as it turns out it was our fault for not managing the offshoring properly.