Recently, I came across a rather disgusting offshore outsourcing model which is nothing more than a rip-off scam.  Interestingly enough the scam is being pulled off by a company which is trading publically in its home country and has ties with major software services firms in the U.S. as well.  If you look at this company and its representatives, you would be willing to just jump at them and cut a deal.   Please note that not all offshore outsourcing companies are like this.  I have had some good experiences as well.  So this is how this scam works (anyone interested in making money by unethical means is more than welcome to copy this - just remeber: Shame on You! )  :

1. Booze and Shmooze a senior manager / executive  who works for a client.  Buy him if you can by offering a cut from the total billing.  After all he may not be getting paid enough to buy the next diamond ring for his wife or new car for his teenage son.
2. Get a PO signed for 25 people who will be working on your project.  Make sure that PO allows you to collect partial payments as you make partial deliverables or with time.
3. Hire 5 mid-senior level engineers.  Hire 20 fresh college graduates who are desperately looking for their first break.  Have them sign a 2 year bond so that they cannot leave you.
4. Have the 5 work their butts off to see if they can deliver a crappy yet functional solution.  Have the other 20 do menial tasks or use the same 20 for some other project as well.  After all these 20s are the ones who will be generating more profit than anyone else.
5. Once the crappy solution is ready, collect all the funds on PO.
6. Any bugs, performance complaints etc. should be treated as enhancements and a separate PO should be generated for that.
7. Start all over again with a new PO and even a new manager.  You will be a multi-millionaire if not billionare in a very short time.