The (microeconomic) problem with offshoring is that other countries (think of India, to use a stereotype) have a quite different level of education, work morale, sense of quality etc. That is why it worked so badly. On the other hand, inside a common cultural area, this should be much less of an issue.
We get excellent work out of India, with the primary downsides being the related factors of 10.5 hour time zone difference to either US coast and higher demands for coordination/communication.
If India was in a time zone with more overlap with the US, the situation would be far more dire for the average US software developer I think.
If you go in and just want "lots of bodies, cheap", you're going to light money on fire, waste your time, and pull your hair out.
This is the offshoring holy grail. Let’s be honest here please, exactly the same structures and cultures that allow effective remote work also enables continued and increased offshoring. With the accompanying negative effect on US developer salaries. Indeed companies should be focusing on this significantly!