You sir, are an ignoramus. When you have an idea to grow the business that will cost you $X, and you only have $X to spend, but doing it domestically would cost $2X, your choice would be to NOT grow the business.
Hint: Once the business has grown, you create domestic FTEs, so make the investment and grow the business.
It’s a leading edge spend. Seeing as you think wealth generation and business growth is traitorous, I’ll assume you are a Bernie Sanders voter and leave it at that.
The vaunted "work 24x7 in multiple timezones" usually fails, because the idiot in the Third World country has zero initiative or creativity, so if he has any questions he twiddles his thumbs until the end of his shift when he fires off an email asking for clarification. If you're *lucky* the American tasked to answer it, can read between the lines enough to do the Third Worlder's job for them without it actually showing...if you're unlucky you waste 2-3 days going back and forth.
This plays hob with schedules.
The compression of schedules can come out of QA (which it usually does, since nobody in management has the intelligence or competence to ask the proper questions of developers). The result? Shoddily written product which is sparsely tested.
You have wear-and-tear on employees who are expected to come in early or stay late in the vain hope of catching one end or the other of the offshore developers' shift.
You have people who have to write specs in nauseatingly unnecessary detail, so that that Third World "world class EXPERTS" can follow the instructions to the *letter* for every possible contingency.
You have the problems of knowledge loss by high turnover in the offshore resources; intellectual property theft; and higher overhead caused by management having to hold their hands all the time, often with site visits to put the heat on them.
Then you have the problem that for all their arrogance, when someone from a non-Western culture screws up, their culture is "shame-based" meaning they will first lie through their teeth, then feign language/communication barriers, then hint at discrimination, rather then admitting in a timely fashion they screwed up and not only fixing it, but doing a deep dive analysis to find the root causes and fix the process.