Fully agree. Nationality alone isn't a sure fire indicator of quality. I find that on average there is a higher success rate with eastern europe / russia vendors, especially when the onshore personnel are inexperienced with outsourcing. But of course there is hits and misses no matter what country you choose. Finding a good vendor in any location is a discipline in itself.

And yes, if a company decides to outsource with low price being the overshadowing priority, they are likely to end up with the amazingly low price and amazingly low quality vendors.