Missing a market is as big a problem as blowing a software project.
Outsourcing can work.
Insourcing can work.
Both approaches can and have gone down in flames, too.
Screwing up the responsibilities for the oversight of code development or failing to account for maintenance, well, that's a problem; outsourced or in-house.
You must get the motivations and the goals aligned.
The problems here can parallel those of paving roads, building bridges or other chunks of civil engineering. If you cheap out on the specs or on the construction (eg: low bid; too good to be true) or if you entirely separate the construction from the requisite and ongoing maintenance (in software: what, no code reviews before acceptance?), you can receive different results and differing construction materials and techniques.
Outsourcing can work.
Insourcing can work.
Both approaches can and have gone down in flames, too.
Screwing up the responsibilities for the oversight of code development or failing to account for maintenance, well, that's a problem; outsourced or in-house.
You must get the motivations and the goals aligned.
The problems here can parallel those of paving roads, building bridges or other chunks of civil engineering. If you cheap out on the specs or on the construction (eg: low bid; too good to be true) or if you entirely separate the construction from the requisite and ongoing maintenance (in software: what, no code reviews before acceptance?), you can receive different results and differing construction materials and techniques.