How many Indian footballers can David Beckham's salary hire?
Why doesn't Real Madrid outsource their footballers to India?
Ridiculous, but the thing is a lot of managers believe that outsourcing is the key to lowering their costs.
But from my experience and observation hiring cheaper programmers doesn't necessarily mean the project is cheaper or better in fact, it could lead to failure.
If your programmers are cheap but of low quality there is no sense in hiring them. Because software engineering is not a manufacturing process, it is a design process, it is a talent based activity.
A lot of managers don't understand that, but they should. The reason to hire from India or China is not because of cost but because your local talent pool is limited.
You cannot outsource design, creative genius or intellectual prowess. It must be in ONE person. Two persons with the IQ of 100 do not equal one person with an IQ of 200.