Outsourcing the IT activities offshore seems to be a viable solution to more developed countries with stronger exchange rate in comparison with the countries offering such services. Let's take Canada, for instance. most of the IT services are being handled through India since it seems to be more cost effective rather than having in-house team. However, there are some setbacks. You don not have quick access to your team and defining new projects or troubleshooting for the problems inside the company seems to be pretty much time and energy consuming.
On the other hand, for less developed countries, offshoring IT services is not a feasible strategy as it would cost them more in comparison with having local teams set their system up. Hence, considering the monetary aspects and financial barriers are absolutely crucial in decision making process