If you don't offer such a package, your talent is going to vanish and you'll only be able to send utter mediocrities overseas. No one with options is going to move to another country while remaining a subordinate code monkey doing grunt work for "the palace" an ocean away (which happens in branch offices of many multinational companies). Which means that your New Delhi office will be trained by the cast of Dumb and Dumber. Epic fail.
Heh.
I can't agree more with your characterization. I work for a company whose main office is overseas, and almost every single dealing with the central office (especially if any work on their part is involved) is encountered with a "let them eat cake" attitude. You get used to the idea that they don't think any of the satellite offices exist.
A lot of people want to move to a foreign country to make less money? IBM is either lying, or the people they hire aren't very smart.