Offshoring is a matter of perspective. From most IT orgs the current situation is exactly this: software and services are made by integrating stuff implemented by suppliers in foreign countries and foreign language speakers (mostly english).

I do think it's puzzling that SV companies don't do more offshoring to eg European countries where SWE salaries are so much lower but lots of talent exists and there is a dearth of interesting product companies.

But would it really be bad for SV engineers? Maybe it would just make the SW market hotter, just like the mainstreaming of open source boosted paid SW work instead of hurting it.