Imagine that to compile your program you have to send it to India and wait two weeks. Every simple typo you make takes two weeks to be noticed. I used to work for Nestle when they were working on a global SAP implementation - all development was outsourced to India. I don't know what was the history of this - but when I was there the analysts were required to write so detailed specs that they were like a program in assembler. Only that you could not compile it, run and check if it does what it is supposed to do. That was insane!
Customer representative directly in outsource office solves this kind of problems. Otherwise you need developers which are both experts in development AND experts in the field of your application.
