What if the value add of off shore had nothing to do with the work done, but with the threat of replacement. Not that you could actually do the replacement, but the threat of it could result in reduction in wage growth that more than made up the waste of using off shore outsourcing.

Don't think I've seen this idea explored before. Maybe the numbers show it is completely idiotic (I did basically come up with it in the shower). Guess its my new conspiracy theory of the month.