It's being called the "Indian Enron".
Satyam, a large firm that does outsourced IT work for many major US companies, is on the brink of death. It was revealed yesterday that they had been falsifying financial reports "for many years" and had far less cash on hand than they claims ($3 billion versus $53 billion). It's unclear if they will be able to meet this month's payroll.
http://tech.yahoo.com/news/pcworld/20090108/tc_pcworld/satyamtriestoreassurecustomersinvestors_1
This is one of the two major dangers of outsourcing I've long spoken about. No one cares about your company as much as you do. Anyone who doesn't work for you will try to do work as quickly and cheaply as possible to minimize their costs as they don't have to deal with the consequences of shoddy work. Also, even "non-core", but necessary functions leave the rest of the busines exposed to disruption if they are to stop because a vendor goes out of business.