They are substandard (Score 1)

It's really quite plain and quite simple.

We have been turning potential clients away for the past two years, all of them American clients too. Of course we are a level 5 EM certified shop with all our algorithms promised to run at Olog(n) or better. We promise or your money back. We do better work than most American shops at a fraction of cost.

These shops are peoples who only have maybe high school education and no learning on the high level programming technigues so it makes sense for those people to lose works. And the same thing will happen in these other countries where peoples find out it really isn't that hard to program and then you get more competition and the price goes down and the work goes somewhere else. You have to be the best if you want to survue and make a buck in todays global market.

Funny how Frank Brooks book The Mythical Man Month talked about this 20 years ago and it's still true today.