Ah but outsourcing carries its own set of problems. Its not as efficient as having the workforce right there to oversee, to sit down and work out what needs to be done to solve a problem etc. if outsourcing were the answer, they wouldnt have brought in all the H1Bs. Thats more expensive.
I know a guy who worked for a company that built an offshoring center in the Philippines.
They spent millions of dollars getting it up and running, and were getting almost no ROI out of it. They sent him over to see what the problem was.
Turns out all of the employees spent their days goofing off. Playing cards, watching basketball online, etc.
And he had no stomach for being the white guy walking in there and forcing them to change their ways.