My company brought all their work back in house and on shore because outsourcing was actually too expensive. Sure, the hourly rate was low, but the quality was also low and the time zone issues were a problem. The low quality work resulted in huge costs later on down the line.

You don't say what line of work you're in, but if it's something where your work needs to stand up long-term and be built on over time, off-shoring only seems to cut costs. Long-term, it's very expensive.