That's exactly what I was thinking when he invoked a
..."Swedish gaming developer" (cough*DICE*cough); they know what their team is worth: 3 off-shore workers EACH, and he claimed *they* were the ones who needed to 'change their thinking about Indian et al IT staff'! It "ain't broke" (they're arguably the world's premiere game studio, with an 'environment engine' unrivalled by any but Unreal, and in use by others), but the article recommends they send their work to a place that would require 3 times the manpower, so they can live in daily dread of the "phone call" when 'something goes wrong'....
UK/US software companies would do well to ignore this article and follow the example of companies such as the "Swedish gaming developer" that do their own work, pay a decent salary by local standards, and turn out an outstanding product. The dreaded "phone call when there's a problem" is not part of a 'solution' as the article maintains; it's the beginning of a ultimately self-inflicted nightmare---one of (as I quote you) "...failed SLA, overages in working on basic problems, which then ends in high costs to the company because they couldn't live up to their SLA promises." That's the new 'global reality' that he expects Digital Illusions CE, and other successful 'on-shore' companies to embrace. DICE is actually the perfect example of why NOT to outsource (We'd STILL be waiting for Battlefield 3 if they'd sent their work out!).