Hard to outcompete such dramatic cost savings. An engineer India is going to cost a tiny fraction of one in the Bay Area. Not sure that's a winnable competition unless you accept a massive pay cut.
My sense is that today a top notch engineer in India, working for a US-based company, doesn't cost "a tiny fraction" of one in the Bay Area. A faction, yes, but not a tiny fraction.
If it were a tiny fraction there would have to be an equally large opposite force keeping that engineer from immigrating to the US, and as onerous and terrible as the visa process is, I don't think it will prevent the best from migrating for better wages, even temporarily.
Exactly. If they're as good as you think they are, they'll also be good at capturing a large fraction of the value they create.
There's an ancient Dilbert about this somewhere...