The alternative is to set up software hubs in those other countries.
Then watch your cutting-edge company dull and rot, as the 10-minute turnaround time for Q-A turns into one day due to the near-half-day time offset.
(It's especially a scream to watch management try to use Agile techniques across a 12-hour offset and a giant culture gap, too.)
And that's assuming you find exceptionally competent help. (Hint: There ARE really competent engineers in, say, India. But they're pretty much all employed, and paid substantially more than the bulk of the body-shop fodder which are most of what you get now.)
One way to solve the time gap issue is to move the whole operation, including architecture, design, and admin, offshore. But then your IP is over there and NOT over here. If they're not competent you're left with restarting from scratch or an older snapshot when you realize they've blown it (and you're now months or years behind in the race to the window). If they ARE competent, watch for them to quit and start their own company (with your IP, under their IP laws and (non-)enforcement), leaving you in the same position but with a new competitor.
Even with engineers of ordinary competence and the project split across the pond, offshoring can be of negative value: Your designer spends a bunch of time breaking off a chunk to be done overseas, then ends up doing the work himself anyhow, when the module doesn't arrive in time. So the added worker cost both his own pay plus a bunch of the time of the local guy on the critical path without any benefit from his work product.
The invisible hand will get around to swatting the company - perhaps into the dustbin of history. But that takes some time.
= = =
But, speaking of the invisible hand: I'd like to see if we can get its input.
A company "needs" a foreign talent? It's not just using H1Bs to get cheap labor? OK. Then the talent is worth a lot of money, and should be paid it, right?
So lets try this:
- A cap on the number of H1Bs, some number N.
- And each year they go to the N candidates (or as renewals for those already here) being paid the highest salaries (with preference to those already employed in case of ties.)