Application outsourcing is not transactional
IT Application outsourcing is not just head count replacement by cheaper alternative (offshore, outsource, whatever). It has to be more strategic than that. The skin in the game needs to be there for a complex outsourcing deal to work out.
Delivering complex enterprise solutions require a deep understanding of not only the technology but also the business, the impact (both positive and negative) and long term ROI.
Considering app development outsourcing as a simple transaction would be foolish.