Do those people really believe they're the most intellectually superior to the rest of the world? If a job can be done purely remotely, what stops the employer from hiring someone who lives in a cheaper place?
* lied about their capabilities/experience to get the job,
* failed to grok requirements through the language barrier,
* were unable to fix critical bugs in their own code base,
* committed buggy chatgpt output verbatim,
* and could not be held liable because their firm is effectively beyond the reach of the US legal system.
In a couple of projects I've seen a single US based developer replace an entire offshore team, deliver a superior result, and provide management with a much more responsive communication loop, in 1% of the billable hours. The difference in value is so stark that one client even fired the VP who'd lead the offshoring boondoggle.
Software talent is simply not as fungible as some MBAs would like to believe.
But I also believe the managers hiring offshore employees are fully aware of this. If they aren't then they're not very good managers and/or have no idea what they're doing.
The offshore people mainly work on SAP and legacy systems though; it turns out it's very hard to find willing or competent people in Europe that actually want to work on / with SAP. However, foreign workers have less qualms about learning stuff like that, since the money is really good.
I have a feeling it's not working that well anymore because the people covering those juniors just earn more going to work straight for the client and they have less burden on them. Used to be harder so the agencies had leverage, nowadays even big companies will hire individual B2B contractor.
regular "line" SAP admins had to be found in Mexico and brought up on TN visas -- still well paid but generally pretty good, doubly so because we had a Mexico City office and could retain the staff even after they rotated back to MX.
This was the sense I got from a friend's situation: he works for a consulting firm managing a large offshore team billed as "Oracle Experts" who are in reality completely incompetent. (Side note: How would a bunch of young third-world devs go about mastering a niche technology to the expert level?) The offshore team meets their contractual obligation by committing nonsense SLOC everyday that contains vague references to the requirements. But as the quarters roll by, it never actually meets requirements. So my friend learned the only way to deliver is for him to personally implement the solutions while juggling semi-daily meetings with the clients and the offshore team. The client is happy in the end, but it all takes a lot longer than it would he could drop the offshore team entirely.
In this situation, the value of the offshore team is they make the client believe that 1) their problems can only be solved by a large team and 2) they are paying less for this team than they would otherwise.