If the physical presence makes no difference (software development, for example) -- then you want the CHEAPEST place you can build an office and still be able to hire good talent. I think what many companies would find if they actually thought "outside the box" a bit, is that there's a LOT of great computer talent in the small, rural communities. Kids growing up there don't have as much to do, so many gravitate towards the home computer and the internet, and spend a lot of time with it. The technical minded who don't envision themselves working the family farm like their parents did constitute a good hiring pool that's neglected.
If a place is cheap is because nobody will like to to stay or have a business in that place most of the time. If you are building a factory with the working turns and an internal dining room and is so big that you have a private railway inside is a thing. If you are a tech company and your employees can't fill a 10 m bus and it's possible that you have to ask flex hours it's another thing.
Having a choice between herding goats and making tech support by phone I'll prefer herding goats. You can always butcher a obxonious goat.
This is why the growing approach is the combination of the two. RTP in North Carolina, Austin, New Orleans, Oklahoma City... All places people are willing to live, with stuff to do, much cheaper in terms of real estate / utilities / taxes, and a talent pool available. For a start up Cali or NYC make sense, but for an already established company? For example if Cisco will pay you the same amount of cash to work in RTP, Herndon, or San Jose why would you not go to RTP?
I swear i NEVER thought I would ever see the day that M$ was more responsive to it's customers needs than either Apple or Google. Looks like the "Big Bad Beast" has gotten a conscience.. while the "do no evil" camp has slowly become the devil incarnate... I think I like those guys at Redmond just a tiny bit more....
Make no mistake, this had nothing to do conscience and EVERYTHING to do with getting killed on pre-orders. That they came up with this in the first place proves they have nothing in the way of conscience about what the consumer wants.
One man's constant is another man's variable. -- A.J. Perlis