So offshore projects require the Waterfall methodology to succeed? What if requirements change? The design has to change and of course the code. I think you are exactly right, but the nature of development makes offshoring problematic. I have not yet seen good software products created over seas. Usually they need lots of work in-house (rewritten). In my experience the cost savings of offshore development is really creative accounting
In some cases, especially if you have a good plan, you can get a very decent product out of the project, but changing requirements (especially with today's agile environments), are not conducive to off-shore development