i used to run web operations for ford. we outsourced a lot. here's the problems you'll have outsourcing overseas:
1. language barrier. even the english speaking teams have a hard time understanding what you actually need. and if they under-deliver they will say they misunderstood.
2. non-proprietary. i don't care what type of contract you sign, your code will be sold to someone else. if they have access to your db, your records will be sold also. this cannot be protected overseas.
3. cheap crap. overseas code is very cheap but often is missing elements, was built shoddy, and/or cannot be reverse engineered. they don't charge 2 bucks an hour because of their cost of living. they charge 2 bucks an hour because they will probably only spend an hour writing your code. most likely, your code will be taken from another project they worked on, which means they will change your specs to match existing code.
i'm not saying don't do it. this is a huge debate all over the country. it was a very big debate in detroit, where the auto industry is having a tough time staying afloat. what we discovered is that saving a few bucks will eventually cost in missed specs, stolen code or a lack of liability.
US and west european coders are liable for their work because they can be prosecuted. if you can't afford to hire westerners then try to offer a percentage of profit. a lot of programmers will go for this even if you never make any profit. most programmers are avid gamblers!
okay back to my porn....