IBM is particularly dysfunctional in this regard. I keep in touch with a lot of friends at IBM and a common story is that they'll cut headcount by one on a local team and hire two or three people overseas. The overseas people will require so much handholding to produce correct work that it consumes in entire person's time locally, negating any potential cost advantage and causing massive delays, as simple work items require corrections taking multiple round trips between people in different time zones.

I don't have anything against overseas labor and I've worked at companies where the overseas dev teams are first class citizens and produce work that's comparable to the work produced here, but IBM is not one of those companies.