They just don't have the technical ability their western counterparts do, obviously some do but finding them is a crapshoot. Also if you pay people too much they won't stay with you and that will be a much bigger issue when you can pay someone more than they would otherwise be getting (even if it's costing you less)

There's also control, if you outsource your whole project then why do your workers even need you? They could just do it themselves and cut you out completely.