The problem is the outsourcing model, not nationality. You could outsource to a company of great programmers in Romania or France and still have the same problems of being overbilled for hours and lacking clarity of product vision. You could hire those same programmers directly and move them into your office and have a better chance of overcoming those problems. Heck, you face similar problems with law and PR firms in your own city. The problem is in thinking the hourly savings are worth dealing with overbilling and poor vision sync.. The more complex and dynamic the project, the more worth it to go with in house development.