In Denmark, a startup hired some freelance developers. They ended up in a dispute over pay, and the developers locked the project owner out of the project. The startup folded.
If you are using offshore resources, you probably don’t want to wait for a court decision in Manila, Kiev or Bangalore. Are you sure your application, code and data is safe even if you end up in a dispute with your offshore development or hosting provider? Or are you at risk of application or data kidnapping?