I'm one who believes that much, maybe most (but not all), outsourcing is a mistake.  I'm one who believes that outsourcing only to reduce labor costs is probably mostly a mistake.  And so, I'm always on the lookout for stories, anecdotes, and data in support of that view.

I found a great article at one of my favorite blogs, Evolving Excellence, that covers all the bases of a specific example of outsourcing gone wrong.  (Check out Evolving Excellence at your leisure, but go directly to the article here so that the source gets credit for a hit.  More hits means more advertising means they can keep bringing us more articles.)

The basic idea here is that outsourcing is directly counter to the lean and agile approach.  That doesn't mean that companies should never outsource.  It does mean that outsourcing should be done only after careful deliberation as to its contribution to the overall company strategy.  If it's only (supposed) contribution is to cost reduction...it's probably the wrong thing to do.