Are you at Facebook? Because local talent doesn't matter as much. It's not like the Dublin or London office relies on local talent. I've had tons of colleagues from Romania move there. And when they get there, there are a ton of folks from India, Ukraine, China, Estonia, whatever, a huge chunk of them freshly arrived from their home countries.
If Facebook would go to Spain and Italy, even in the more expensive cities, salaries would be so huge that they would completely dwarf the higher cost of living compared to the rest of the country. But places like Madrid or Lisbon would still be cheaper than for example, London. And with definitely better weather :-)
My guess is that the language barrier is the killer. Everybody in IT outside of maybe China and Japan learns English so London is kind of easy mode.
Makes sense. There is a reason that its high COL
Is it a question of language skills, technical skills, or both?