Well - it looks like the reality of offshoring/outsourcing savings differs from the hype - the savings are 10% - 15%, not 60%:

Outsourcing of information technology and business services delivers average cost savings of 15 percent, a survey found on Thursday, disproving market claims that outsourcing can reduce costs by over 60 percent.

After professional fees, severance pay and governance costs, savings range between 10 percent and 39 percent, with the average level at 15 percent when contracts are first let, according to outsourcing advisory firm TPI.

Well. The question you then have to ask yourself is this - is a 15% savings worth the hard to measure, but real annoyance your customers face when dealing with disempowered support staff they can barely understand? Proving that management is often immune to reality, the article goes on to state:

Cost reduction remains the primary motivation behind current outsourcing contracts, but an increasing number of companies are outsourcing primarily to improve quality, at 21 percent now versus 11 percent in 2004.

*Cough*. Yeah, I've always felt that I get better service when I deal with a remote call staff. I have to repeat everything I say, and if my problem doesn't fall into the "is it plugged in?" bag, I have to escalate out of of their domain anyway. Which is always hard. Better quality my posterior.