I think you nailed it. I always tell people to be extremely cautious when considering outsourcing to another country.
Some of the issues that I have run into in the web development world:
1) After a project is completed the code usually gets reused and sold.
2) Language barrier.
3) Commitment to the project (outsourcing 'company' just got up and left).
4) Time zone issues.
Last year I had a hand full of projects from people that came to me asking me to fix the mess they got into with outsourcing! And in the end it cost them 3x more that they originally budgeted.
Beta, Alpha, Bla, Bla, Bla!
Old terms for old software (when software was "deployed" on floppies).
Web apps should always be in a state of change, they are alive!