Nowadays there are many misconceptions about the benefits and pitfalls of outsourced software and web development. Since this is often done outside the US, the term "Offshore" is used interchangeably.
Offshore development can be a very effective solution for jumpstarting a project. However, projects that require higher skill levels or continuing maintenance needs can present several problems.
Myth #1: Offshore development can get me the same results for much less.
Wait a minute - isn't saving money the whole idea?
Not really. While salaries will be lower in India, finding someone with in-demand skill sets and experience may only be 33 or 50 percent of the cost of hiring the same person in the US. If you're hiring that person full-time, they have a lot of big multinational companies competing for them, and you'll need to offer them a solid work environment with good infrastructure, and competitive benefits.
Another thing candidates consider is whether you will may be offering them eventual sponsorship of an H-1 (skilled worker immigrant) visa.
If you're looking to hire someone on a contract basis, there are far fewer individuals freelancing due to the unique infrastructure needs in places like India. Most of the best talent is already working for larger companies that have made the capital investment in office space with battery backup and generator systems. Some of the largest companies lease international fiber-optic since the backbone infrastructure in India is still not on par with Singapore. Once you add in the overhead of going through a consulting firm, you may end up paying about the same as a comparable freelance contractor here in the US.