My employer would rather pay 120% of Nowhereville for a dev in the eastern standard time zone than pay an Indian salary for that exact same dev working in India. And they'd even rather pay 120% of east coast major metro salary for that same dev commuting to their major metro office at least a few days a week.

I get the impression that much of the non-core software dev has already been sent to India. Much of what's left is core to the business and highly speed/quality sensitive, less price sensitive. Some of it even got offshored then reshored when management realized that time/language/culture/etc issues impose a variety of real costs that may or may not be acceptable depending on the project.