This is a key question for startups, to build your own team or to outsource? Although some organisations have had great experiences building tech purely through outsourcing relationships, nearly everyone advises build your own team, without fail.
But what if you're too small to attract high calibre talent locally or the local market is too small and overheated (Dublin, Ireland anyone?)?
Yousef Awad has written an interesting reflection addressing these questions and his learning from the experience. It's an InfoQ post titled "Build Your Own Offshore Development Team - or Not?"
He is of the opinion that you can and should outsource development when starting out, and continue to do it if you start bringing the work back in-house.