My understanding is that industrial management only works for certain employments, mainly non-knowledge employment. Learning/education is 100% knowledge, which has performed poorly when offshored for cheaper, at least in my knowledge-based field. You get into knowledge debt, which then needs to be paid down, which costs more than actually having bought good talent in the first place...

So, same thing- if you need to catch up you need to pay more...

This makes about as much logic to me as saying you can hire a junior engineer and expect the quality of a senior engineer if you have a senior manager.