Outsourcing your project to countries like India can have a devastating impact on your company. From possibly losing intellectual rights to just plain lack of communication, it can be a nightmare. There are numerous horror stories about companies having a bad experience with outsourcing their work.
Here are a few reasons:
1). Expect no privacy. The code that you just paid for can/will be shared with others
2). Expect delays because of communication problems and different timezones
3). Expect spelling and grammar mistakes all over your project
4). It is unpatriotic
5). You could be supporting terrorism (no we are not kidding)
6). You lose all legal liability over the code