Re: coming late to the party, have you considered that maybe you are suffering from some kind of reverse-surviver bias? In other words, that you only get brought on to failed outsource projects. If the outsource project works well then you don't see it.
Totally fair point--the fellow I recently talked to is completely an instance of that bias.
For sure, there's nothing statistically significant about my few experiences: I have only observations of some of the shortcomings that are quite real.