Managers don't like to send code overseas. Overseas coders aren't very happy about changes and managers love to change specs more than they love to eat. The giant sucking sound doesn't really exist in IT as much as everyone thinks.
Security clearance is hot now as well.
How's that?
As a manager that has overseen the off-shoring of a lot of work - I can tell that managers at my level do not like to send code overseas but it really does not matter - the people that send the code overseas are executive management - they are so far from where the rubber meets the road they could not see the developers and project managers if they had binoculars.
In some respects off-shoring works and in many it does not. While it might save money on a spreadsheet - projects take longer and often go off-track (costing more money). It is hard for executive management to see beyond the bottom line numbers but eventually they will see the light.
Based on off-shoring, my company went from occupying five floors to now occupying one.