“They’re bringing in H-1B’s at $60-90K, so there’s got to still be an advantage in having people here. Something more than time zone. “
Many companies have communications problems even though the people communicating are in the same building. Running a global enterprise is a complex task that’s WAY beyond the average company. Engineers from India will accept much less money and you can have them in the cube next to yours for less than most Americans of similar technological skill. I have known Indians to live in a dorm type setting while pulling down much less than the people they replaced and still sending money home. They are satisfied with less, for now, and willing to live in much more crowded conditions. People here have learned to expect, say, $110k per year and lots of benefits. People here are being replaced with Indians for much less as the Indian, at least for now, is happy with much less. The Indian is also okay with living at a lower level than the American. Imagine telling your wife that the new job’s pay is a big cut and you’ll have to downsize your expectations. (I get spooked just thinking about having that conversation!)
So will kids fresh out of college. But if the market rate increases, nobody's going to lowball for the sake of thriftiness. Indians tend to be materialist just like us, from what I've seen they spend more on average on luxury items like luxury cars and large houses and big entertainment systems than most white family guys in the same pay grade. They want raises as much as anyone.
Trump's reform--taking the highest earners first in the lottery--creates an incentive for companies to increase H-1B salaries in order to "get" the employee. They are bidding against each other for the right to have an H-1B. American workers will start to look cheap by comparison. It's going to bring needed relief for American tech workers, many of whom by now are actually Indians on green cards or who have obtained U.S. citizenship.