Just because you pay 1/10th of a price that you will have to pay in the developed countries does not mean that you are getting less quality people. The truth is that the cost of living in a country like India is comparitively less. 1 cent per minute is what we pay for telephones $2-3 is good enough to get a sumptuous food. It is the macro economic factors that make workforce available at a competitive price in India.
I think it is about lack of homework on the part of the outsourcer that causes the trouble most of the times. When you are smart enough to hire a developer at less than 1/10th of the price that you will have to pay you otherwise shouldn't you be atleast twice that smart. A clearly defined wireframes with specification document is a must before you start any project. Ask your developer questions on the basis of wireframe to ensure both of you are in sync. As a first step outsource 2-3 modules in phases to see if the developer is able to meet up to your requirements. And do the above irrespective of if you are hiring someone from India or any part of the world which promises kick-ass developers at $100 per hour.
I think it is about lack of homework on the part of the outsourcer that causes the trouble most of the times. When you are smart enough to hire a developer at less than 1/10th of the price that you will have to pay you otherwise shouldn't you be atleast twice that smart. A clearly defined wireframes with specification document is a must before you start any project. Ask your developer questions on the basis of wireframe to ensure both of you are in sync. As a first step outsource 2-3 modules in phases to see if the developer is able to meet up to your requirements. And do the above irrespective of if you are hiring someone from India or any part of the world which promises kick-ass developers at $100 per hour.