I can concur with this. I'm working on a project at the moment where the 'legacy' staff are (educated estimate) having to work three times as hard as five years ago to make up for the ineptitude of the "cheaper" on-shore and off-shore outsource resources. (not that they weren't working 'hard' in the first place)
The trouble is, the powers that be see a low chargeout rate on a spreadsheet somewhere but don't see the impact in the shop floor.
The project I'm working on is over-running by c.4 months and the lions share of that is due to outsourcing.
It's a complete false economy run by people with a vested interest to keep the outsourcing contracts going,