When it comes to design, the outsource companies I have seen are so bad it boggles my mind. I don't see them as competition at all 'cause anyone who would pay for the work they do is obviously looking for the cheapest design no matter what the result.
I can't speak for other things like programming or grunt work, but I think even skilled programmers would really have trouble due to the language barrier. It's hard enough to get your ideas across to someone who fully understands English.
I'm an independant designer and I approved this post
