Re: But offshoring is cheap!
My first job out of UNI was in defence industry. The charge to the customers for my time was known as "burdened rate", which was about 3 times my actual salary. Had to cover payroll taxes, pension plan, health plan, office space I used, profit, etc.
In that job, I also learned the value of institutional memory.
Any management weenie who thinks that outsourcing anything but the most menial of tasks saves money deserves the trouble he gets by outsourcing.