Is it just that communicating domestically is easier and quicker? Seems like it would be an easy target for outsourcing, it would certainly be much cheaper for companies.
Outsourcing results in terrible outcome and stress to the existing engineers in US as they frequently mess up the code and design. The quality of outsourcing is not worth the saving. Just look at Beoing crisis which outsourced to HCL in India. I know a few other examples. Even bio outsourcing of creating generic drug resulted in terrible quality with corruption hiding the crimes. People died of this. I honestly don’t understand why would companies outsource any. It results in long term failure even though there is a short term gain. The only success story I see is having a entire dev team in China (Zoom) or starting at overseas then moving HQ to US (UI path in Czech). Outsourcing quality differs by regions but some offices are good at talk and bring in work to just mess up. Europe and Israel are pretty good though. Better to judge the quality based on number of successful companies but that doesn’t happen.