India becomes uncompetitive price-wise when you can no longer hire three people in India to replace one American hire, as the average Indian worker is about 1/3 as good/productive as the average American 1.
If that’s racist — well, the truth is racist (has nothing to do with race, but MBAs who want to offshore along with woke clowns insist it is).
So true in my experience. I have had a small offshore analytics/data management team in Chennai for the last half-dozen years or so. At the beginning of the engagement, they sent one person over to shadow the onshore team for two months or so. He is that one. The only one we go to for answers, emergencies, etc.; god forbid anything ever happens to him, we’d be fuuuucked.