I largely agree with the logic and conclusions in this story about why not all outsourcing of technology tasks to India has been successful. I have some experience in this kind of matter (which I will not talk about in this space - you'll need to ask me in person if you're interested) and this tracks pretty closely with what I've been through.

One thing this article doesn't explicitly mention is that in the long run, the problems with productivity that related to communication and experience will be worked out. I don't see this as anything but a bump in the road. On the plus side for me personally, I'd rather work in the invention and engineering side of the house than in the operations and production side anyway. I recognize that this is the smaller slice of the labor pie, however. Link via Suburban Guerrilla.

UPDATE: Kevin Drum's experiences are similar to mine.

UPDATE: Linkmeister chimes in with smaller-scale anecdotes.