I am from an Eastern European city with a major outsourced IT industry, and I often associate with these IT workers and I visit their offices for local programming language or Open Street Map meetups. I don’t agree with your comment. Available hardware is fine. Benefits include generous private healthcare in addition to the universal public healthcare, as well as reimbursement for taxis so no one ever has to use public transportation or drive. For lunch, companies order good food from local restaurants. Furthermore, the employees all get the minimum holiday set by European Union and local law, and they do use it; I have never heard of a culture here of not being able to take holiday like in the USA. Yes, salaries are smaller than in the USA, but by local standards they are very generous and people are starting to complain about the IT sector pushing up prices of housing and restaurants beyond what most non-IT workers in this city could pay, just like your San Francisco.
I agree that local call centers, another big outsourcing industry, are exploitative. But devs? No. Maybe that is only further away, outside the EU. Within EU countries, if you don’t treat your devs well, they won’t stay; they will leave for Western Europe.