The equilibrium will be reached at a much lower price point than in the case of restricted supply of talent. Whole industries restrict the supply of workers for that reason: CPA, lawyers, and dentists being three prime examples.

People like to pretend that most things can be trivially outsourced, but that's not the case at all. Managing a team down the hallway is hard enough. Managing a team in another timezone requires the kind of skill not commonly found in US corporations.