Latin American countries have become more popular for offshoring lately as you can get cheaper than US rates but still have the same or similar time zones.
Outsourced can be anywhere and when you're referring to US, anywhere else is cheaper. Commonwealth devs for example are at least 20% the cost of a US dev. That 20% more than covers the cost of access to a frontier model that this dev could drive.
Thinking of LLMs in human units is super strange and if you wish to consider the economics you have to also account for the lowering of barriers to entry.
I think where were missing each other is that the human agent can also be outsourced. Not all outsourcing involves rote tasks and the lowest skilled workers. The difference between the mean US senior dev salary and everywhere else is large enough to cover a manageable LLM cost. So there's no reason why a company looking to cut costs need stop at the lowest rung to makeup for LLM expenditure.
Another issue is that there are cultural barriers. People in India or elsewhere may say "yes" when they really mean "hmm, probably not" because saying no to a superior could be considered rude.
If you replace a big team with a small team and LLMs, you are actually saving money overall because LLMs are much cheaper than humans. But you may actually need more skilled humans than previously, not less skilled ones, because they need to be able to manage a large volume of code being generated. LLMs are not good news for outsourced developers. They are the opposite: a cheaper substitute for the grunt work that they had been providing.
Simply put, if you want frontier models at API prices, you can make up for that expense by hiring non-US talent. Many who have a good command of English and are willing to overlap US hours. There's plenty in LatAm alone. Whether or not that's a good choice for a business isn't relevant to the point I was making.
Where you appear to be stuck is that you think outsourcing is only workers with poor English who do grunt work. It's a rather myopic view of the situation to be polite.
but for OP's use case, people with some capital and many skills who need additional help, AI is solving a problem in a way that was not solvable before, while improving on coordination abilities and coordination velocity. Offshore developers do not come back into play here.