I'm not reading any deliberate sabotaging in this write-up. You do? They spent way more time and resources getting that offshore team up to speed, but the team still failed to do anything useful.

It wasn't their job to make this work no matter what, it was their job to use this team as a resource. If this team then goes and mucks about for two months instead of asking for the resources it needs (e.g., “We're stuck getting this codebase to work; can you assign someone to walk us through it?”), then the failure lies there.

If your CEO was looking to make this the new way of working, I would be very careful not to commit any hidden resources either.