On this news.com.com.com.com.com article, apparently business people are finally starting to realize things that most competent Software Developers already knew– you get what you pay for.

Murali Menon, an Indian-born executive who was ConnecTerra’s vice president for engineering at the time, dealt with the recruitment of the Indian company. He said the Indian programmers required more detailed instructions to write the software code than would a programmer here, who would be more familiar with the customer’s needs. This slowed the process, which was a major drawback because this technology is new and changing very fast. Ultimately, the product that the Indian programmers delivered was unwieldy, with software code written in one big chunk rather than more flexible modules that top programmers use now.

No one questions the dedication of Indian programmers. “They worked hard,” Menon said of the programmers in India, “but couldn’t keep up.”

Not that something like this is going to bring outsourcing to a halt, but I think there are plenty of other outsourcing horror stories out there which you don’t hear about.