Does offshore outsourcing really open a Pandora's box?

In a 1/4/05 editorial, Enterprise Systems' Steve Swoyer wrote about the risks “in terms of information security, data privacy and potential legal liability” associated with outsourcing IT. Do you think the fact that outsourcing IT processes “invariably [exposes] corporate data to contract workers overseas” represents a significant threat? Don't most US-based firms harbor their own potential “bad guys?” Do you think you should worry about the integrity of outsourced/offshore workers more than you should your own employees (or potential breeched security)? Interesting issues to ponder.