The cost of hiring good talent (whether remote or on-site) will always be the same. Companies (tech and non-tech) and government facilities have tried to hire cheap labor to replace more experienced workers for many decades. The result is usually the same with a few exceptions: poor work which has to be refactored, re-worked, or completely thrown out. Usually underpaid employees have no incentive to do anything more than what's assigned to them. The old adage comes true: "you get what you pay for."
In the end the employer has to deal with a shitty product and in the end hire the right talent to get the job done (which they should have done in the first place).