[BlazingArizona]

No US Java programmer is going to work for $14 per hour. And even if they did, they would probally not have a very good attitude about it.

This brings up some related questions: if the offshore team fails to perform or includes some horrendous bug that shows up only after delivery, do you, as the broker, assume all liability? And will regular commercial E & O cover you for such things, or do you have to self-insure?

In either case, what percentage of your rate to the client is insurance against these calamities? How is the liability spread in case of foreign events beyond your control, such as nuclear war between India and Pakistan?

[FoxPro]

This brings up some related questions: if the offshore team fails to perform or includes some horrendous bug that shows up only after delivery,

I would probally move to Moscow. A bottle of good vodka is the equivalent of $2 here.

Actually, in 20 years, I have never worked on a failed computer project, so I am not sure what I would do. It seems like a very remote possibility. Failure is never an option.

[lelio]

This brings up some related questions: if the offshore team fails to perform or includes some horrendous bug that shows up only after delivery, do you, as the broker, assume all liability?

You could have written into your contract that your liability limit is the cost of your fee.
However this brings up another point: what happens if those programmers you've hired turn around and use the same code on another project? Now a second company has the first one's IP and might use that to gain access to their system.
Granted that can happen with any programmers you hire.