It's going to cost them more in the long run. I worked for a company that had an office in Noida and development and support was moved there after we trained Noida team for a couple of months and provided them with an ongoing support. The end result was that the level of customer service was subpar with twice as many people in support and the product was buggy and didn't really nail customer requirements. Perhaps the problem was that the teams were managed remotely but after that experience I'm convinced that nothing beats local team and that offshoaring isn't worth it.