Outsourcing comes with significant costs. One of them is that it takes time to communicate with the outsourced team. For example, if you want to talk to someone in India, you might have to send an email that they read the next day, because they're almost 12 hours separated from you. So exchanges that would have just been 15 minute chats with a US-based developer turn into multi-day back-and-forths. If you are hiring someone to be the architect of your system, don't you want to be able to talk to that person? That's why even the most outsourcing-obsessed companies usually did not outsource architects.

Another issue is that there are cultural barriers. People in India or elsewhere may say "yes" when they really mean "hmm, probably not" because saying no to a superior could be considered rude.

If you replace a big team with a small team and LLMs, you are actually saving money overall because LLMs are much cheaper than humans. But you may actually need more skilled humans than previously, not less skilled ones, because they need to be able to manage a large volume of code being generated. LLMs are not good news for outsourced developers. They are the opposite: a cheaper substitute for the grunt work that they had been providing.