Today, we are normally looking for developers/experts to work on custom projects or even do some staff augmentation. Sometimes we need subject matter experts for heavy lifting and sometimes we need a warm body.
We've aligned ourselves with some very capable software services companies. It's not a question of quality and in most cases I think our full cost is fair but it's hard getting people to look behind the hourly rate.
Sorry for sounding cagey but I'm trying to avoid saying things that open all the other debate points....