This assumption is a pretty Western view, in that you assume that SV/USA still has technological primacy. I believe this to be generally true, but leadership has no incentive or reason it should. And if I'm being frank, there may be some bias here because it seems like companies with indian CEOs are offshoring at a much faster rate than non indian CEOs (e.g. Google vs Netflix). And non core roles could effectively be perceived to make up the majority of the company. So some cultural fondness for India plus a somewhat low view of the bulk of employees could result in most jobs being offshored.