Why don't you 'experts' show us 'poor' Indians how its done? Lets see some of you 'anti-outsourcing' brigade actually show some of your work, instead of just making all encompassing statements without any substance. It's hilarious to see people whose sites don't even figure in the top million in terms of alexa rank talk big about 'custom' development.
Ober - choose someone who knows what the project would require and has the demonstrated ability to deliver it.
Geo location hardly matters now that we have this wonderful medium called the 'internet'. Those still grappling with the global marketplace paradigm are probably not geared to be globally competitive. I'm all for supporting local businesses, but not at the cost of your own.
Amen to that!
mrjohn, DylanButler - agreed that some companies are 'noobs' or w/e it is you 'uber custom developers' call them, however, it may not be a fair thing for you to write-off
all Indian companies.
You consider yourselves savvy with the internet - why don't you guys spend some extra effort and search for "Kolkata", "Mumbai", "Chennai" and "Gurgaon" Web Developers and go through their work / teams?
You might actually be surprised at the kind of stuff these guys can put together...
Their teams no longer consist of the stereotype Indian male in his forties sweating in front of an age old monitor screen trying to make a dollar and ward off sleep.
These are proper business models with turnovers of probably upto 100 times your net-worth

(I don't know what you self acclaimed 'pro', 'custom' developers make - but I know of two companies here which do over $100,000 + worth of business a year

).
Hence, before you slam an entire country's workforce, please get your facts right.
Also adding to what Samit rightly said - you're here on the internet - whether you like it or you don't people from all over the place
WILL be present. You can't just go all racial here, lol. Or heck, try that - you'll know very soon just where you stand when you see all business dodging you and your 'pro' services. The bottomline is who
really can provide what - and for how much - PERIOD.
Getting back to the thread opener's query,
oberheimer - in my opinion, get a hold of these guys over Skype or something, talk to them - ask them exhaustive questions in addition to the various technicalities you're after. There have been several cases I've read about on the net about off shore companies scamming guys or overcomitting and then screwing people over...
A committed company or individual would not give up and you might just find yourself a satisfactory solution.
However, if a guy cracks up after a couple of questions, you'll know you gotta move on and find another fellow.
In addition to this, you might want to use a little caution with such a company whom you've never dealt with before - theres a little guide that I wrote sometime back - some parts of it may be relavant to you.
Anyway,
Good luck with your project
