James Robertson has a good post explaining why outsourcing isn’t the end all and be all for business. Time zones are just one of the must fundamental obstacles:
Sure, we can communicate just fine using all sorts of whizzy stuff on the net – so long as someone is willing to do it during non-business hours. That works fine if you have a project that requires minimal communication. I hate to break this news to Mr. Gottfredson, but software isn’t one of those projects.