I've been into IT outsourcing for 7 years (my other biz) so I don't think companies that DONT outsource stand a chance to compete in the global economy ...
The issue is to outsource to the right company (as Mutt pointed out) or of course create your own sibsidiary in India (China or Russia) like the big boys
So, Mutt, if you want to have a WantonGirls - European division, let me know