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The bigger picture is maintaining profit margins while GDP shrinks. Don't know about the UK, but in the US, you can hire 2 offshore developers for the same price as a domestic one. That means if you only hire 1, you've got nearly 2 extra salaries worth of budget to play with. The flip side to that is, no, you don't usually get the internal knowledge and creativity you'd want--which might be needed if your company is struggling.