Having been present for outsourcing attempts that went badly, I can say that generally they will not (did not) go well. I don't know if it was that the devs were not good, the communication loop was bad, they were supporting too many outsourcing customers at once, or what. But, on multiple occasions I've seen it not turn out well. That ship sailed long before the pandemic.

So, the question is, will it work any better in Michigan? Quite possibly; the timezone and language differences are much less. Plus, if you worked for Microsoft or Google, you probably wouldn't try to also work for 2-3 other employers at the same time. But, if the issue was simply that remote work impedes good communication, the results will be similar.

My guess, it will sometimes work. I guess we'll find out soon.