I was doing research at a large European bank that has a lot of development outsourced. The project management primarily located at their HQ in Europe while the development is mostly in India.
They have had to resort to moving over a fair few people from India to their HQ as the communication just doesn't work as well otherwise. There is simply no replacing face-to-face communication.
The Communication has the be incredibly specific when outsourcing, not to mention the time difference which carries another set of issues. Both contribute to communication issues, at which point it may simply be better to do it locally, or at least move contractors over from outsourcing location to your HQ.
Remote work is popular right now but the value of just being able to walk over to a colleague to discuss a problem should not be underestimated.