At my last job we switched from contractors in India to a group in Peru. I wasn't around long enough to determine if there was a quality difference but being in

At my last job we switched from contractors in India to a group in Peru. I wasn't around long enough to determine if there was a quality difference but being in the same time zone improved communications dramatically. PMs in India were constantly trying to reverse the relationship and have us work in the middle of the night if there was a need for a conference call. Our Peruvian colleagues started their days at the same time we did, so there was never an issue over which group should lose sleep for a conference call.