I am not going to speak for this particular situation, but am going to jump in to comment about all the overseas work everybody seems to cry about. Overseas work in general is not conducted mostly to 'save money' because 'companies are cheap', and 'don't care about the American worker' but is done so because people in this country simply do not want to do the work.
No, they do it for the same reason they want contractors. Overseas are just CHEAPER contractors. The whole reason they are in the discussion is the idea
- this isn't our core competency
- its too expensive to build and maintain that competency
- contract labor offers dynamic scaling
If your business will never need IT to succeed, that model would be fab. Just like many companys outsource payroll, etc. You aren't going to cause a market shift in your space by having the best payroll department. The problem is many view IT as such a utility as well.. and lack any vision to understand how IS can alter your own business, what you sell, or how you sell it. They see it as a simple burden of doing business... so its a burden, not an asset. And as such, they will look to do it cheaper if possible on the promise of the same output for less input.
Add into that the cost of employing people in the US.. and contracting vs FT looks like a god send. Contractors you can just turn up the dial and get more or less... you don't carry their overhead in the same cost buckets as you do FT employees. You can't start/stop their involvement like FT people, etc.
If IT were just a plumbing utility for you... it makes sense. But if you want to be disruptor, or innovator in the digital world.. you can't do that with outsource IT managed by accountants.
The main factor is the willingness to work, not cost. Here is a fun fact to all the big company haters on this forum, when researching for a location to build a facility, cost is not the #1 factor, it is the pool of employable people.
.. and the talent base... and the willingness to work at your intended wage scales. You open in Kentucky instead of Brooklyn because the tolerance for wages is far more in your favor there, not because there aren't enough people willing to commute to Brooklyn.
Yes, ability to fill the jobs is a huge part of your location... but its a combination of wages, skill, and the size of the labor market. If you are doing work you can fill with anyone with the eagerness to work.. its a lot easier to build your call center or assembly plant wherever the government will give you the fattest incentives. But start adding in specific needs... and the game shifts.