Business Week published a special report recently on the challenges of looking at outsourcing beyond Bangalore. In fact, it has a whole bunch of outsourcing related articles linked to this report (if you access it via the website).
I felt that it did a great job of putting together a concise list of “soft” issues associated with outsourcing to different geographic regions. It talks about employee attrition, intellectual property protection, etc. All of them, which are, pretty much burning issues in the subject area of outsourcing these days. You can find the report here.
P.S. Don’t forget to take a look at the discussion thread (a pretty long one) created by the readers. Different people from different parts of the world. Quality discussion in general.