The problem with offshore is that you'll start with a team of 8, by the end of the next week it will be a team of 6, with 2 from the original team and 4 new members... by the end of the month you'll have a team of 8 again but with nobody that was on the team for the first 3 weeks.
So the work isn't getting done... and it becomes even more difficult when communication is a problem. We found there to be more problems with offshore work at a cheaper rate... so we've gone the route of hiring consulting companies here in the US to do large projects that our team can't currently handle.