[Ask HN] How do I counter an investor trying to outsourcing our dev?

I am a big believer in having a small in-house team over an army of outsourced development. Sadly our investors thinks the opposite and wants to force us to use outsourced development to put us "5 steps ahead of everyone else". I'm am plagued by nightmares of having to manage these people remotely, being the CTO. We just received this email explaining their stance. What are my arguments against this? Deep down I feel like I recognise that it will cause more problems that it's worth but I'm just having a difficult time verbalising my arguments. --- Regarding outsourcing, in my almost 17 years of working with development I have never met a software developer that thought that outsourcing was a good idea, and across the board they have all reacted as you have, saying that we would like to have fewer people employed in close proximity rather than outsource. I really do understand the reaction, but at the same time, everyone I know who has implemented a well-thought out dev outsourcing strategy has pushed their business 5 steps ahead of everyone else by introducing scalability and cost efficiency into their business model. It is always something that has to be forced on the dev team by upper management at too late a stage in the company’s development, always causes a lot of resentment and conflict in the established dev team, increasing the chance of failure, and usually ends up getting the acceptance of the team as a good idea that makes them all richer and more successful. I’ve always sided with the developers on this, and every time it has ended up being the worst management decision I have ever taken and crippled our competitiveness. We are building a potentially huge business here with multiple million dollar revenues in a few years, this has to be managed very cleverly and with a forward-thinking strategy to have a chance of success. We have an opportunity to build this into our strategy from the beginning and harvest those advantages at an early stage, increasing our chances of a successful outsourcing strategy many-fold. The VC’s will place a high value on having such an outsourcing strategy in place and in several cases will reject the idea without one. Our current projections underestimate the number of developers that we are going to need to pull this off and also do not address the fact that we are going to need effectively around the clock development to keep up with the customers demands, which in itself requires multiple time-zone location. An outsourcing strategy does not necessarily mean we cannot have a dev team here at home, or that we have to have 10 developers in India this month, but it does mean that we have to have a strategy for outsourcing and implement it in the next 6-12 months to get it into the DNA of the company. As soon as we have more developers, the CTO is going to have to spend time managing multiple teams and outsourcing, and we need to have a general strategy for that from the beginning that we can defend during VC due diligence.