Niklas from Stockholm shares his experience with outsourcing to Ukraine. Everything he says is correct except for there are software companies in Ukraine whose developers are not all students. He goes

The entire company sat in two small rooms with computers everywhere, and the programmers was all young men from the Kiev university. But they where all very enthusiastic and with a lot of energy for the new tasks.

While energy and enthusiasm are important even more important for outsourcing kind of work are engineering experience and robust management approaches.

For this case I suggest a simple test. Ask yourself if you would hire students in your country if you could. If the answer is No, then why would you hire them in another country? For most cases you will want your outsourcing partner to have mature processes and management discipline that will save your time in coordinating with the remote team.