Since I am involved and do use the outsourcing ---> The primary problem with such developments is one that is really deep in the thinking of people. Don't mistake me for saying people are not smart. Many Asians are the smartest of people on earth. BUT there are fundamental thinking patterns in Asia that are damaging all developments there.

It was best summed up to me by a very smart friend when he said, "They are great Xerox Machines." Asians are great at copying and really good at predefined applications but culturally they are trained not to see how to solve problems from the start. They copy well.

A brother of mine discovered this in treaty negotiation. He found certain Asians lack the concept of the Subjunctive or the "If" conditional. This means that while they may use the If statement well in programming they are limited in concept design based upon contingency. This poisons the development in almost every respect. A startup is by nature the "What If" team of industry. This pretty much prohibits the Asians of Asian culture from the process. This is why their children raised in the USA express their native genius and do very well.

If you think price is the issue you bet it is! But buying an "If" thinker is impossible at any price. If you in Asia want to make use of your cheap programmers learn to be "If" thinkers and you will make your own startups there in Asia!