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Have you ever actually tried using the low-cost option on Fiverr? They results are, quite frankly, un-usable. The good ones know their worth and charge accordingly.

Simillary, I worked for a Swedish-based multinational that nearshored some of their dev-work to Poland. Well guess what, so did Hertz and Deutche Bank and Ryan Air and a bunch of other multinationals and suddenly the 50% cheaper dev work was down to 10% cheaper.

People won't settle for peanuts just because they're living in a low-COL area, they'll want to get paid what they're worth as well.

Native same language communication skills and same time zone are a big deal for some companies/people.

Similar to why there are a variety of options for most services.

I’ve worked with many offshore devs over the last decade and really do have a great deal of respect for these folks. That said, in my experience you get maybe 1/10th of the useful output from cheap offshore devs as compared to mid-level U.S. and Canada based devs.