“you pay peanuts and you get monkeys”
Have to digress there a bit. I’ve had the pleasure of working with many eastern european and asian developers. Those that have settled here in the UK are most definitley not charging peanuts, but those that have stayed behind are, and doing very good work too.
Its all about trust. You have to build up trust in your outsourced worker and them in you. Each time I outsource, with local / overseas developers alike, you should farm out small, well defined jobs first to gauge their level of expertise, and then pay them promptly… only when you are confident in their abilities should you farm out the ‘build me myspace’ job.
I ended up paying for one guy’s wedding once… wish I could have gone, it sounded like a riot. I got him started by helping me to fix a dead linux box, via msn with a webcam on the screen (it was very dead), and lots of coffee.
Naive clients will always think that they can get a job done for nothing, everyone looks to cut costs, but you have to point out the added value that you can bring to the table
1) ring me and moan
2) come round to my office and moan
3) potentially take me to court if you still want to moan.
An educated client will have already realised the above (probably why they are talking to you in the first place), and should only be worried about the accountability and ownership of the work to be carried out. For this reason never, ever out-source on the sly.