I agree wholeheartedly, but also agree with jsankey's comment that "If communication is solved then it can work well" is a really, really, really big "if". It is absolutely possible to get good results from offshoring...
...however, getting those good results takes a serious commitment of time and effort on the part of the client, some of which has to happen before the project even gets started, and some of which has to continue throughout the project's lifespan. Ensuring that they (the client) actually know what they want before trying to tell somebody else what to build; establishing good communication, documentation, and development practices within their own organization before trying to collaborate with extramural contractors; spending the time and the energy to really dig into it with the providers, and keep them on the phone until you're 100% sure that both you and they are reading from the same page about what needs to be done, no matter how confusing their accents are to you (or yours are to them). These sorts of things are absolute prerequisites for a successful offshoring experience, especially if it's the first time that the client's tried it.
In my personal experience, the sorts of people who are turning to offshoring as a way to "triangle the circle" and get good+fast+cheap are not the sorts of people who are going to be willing or able to put the necessary time and thought into the project, its planning, or its management. These jokers are a big part of why offshoring gets such a bad rap, in my opinion. Of course, none of this is to say that the burden rests entirely on the clients- the providers, and the relative quality of their communication/management/etc. practices obviously have a ton of influence on how a given project turns out (or doesn't turn out, as the case may be).
However, I say that decent planning and project management practices on the part of the client are absolutely necessary (but not sufficient conditions) for a successful offshoring experience. When I hear offshoring horror stories, the majority of the time the problems had their roots in client-side troubles rather than provider-side troubles.