IME, the best engineers are in America because they have mobility and America is where they choose to be. If you pay someone a big chunk of money in their locale, in the kinds of places cheap enough for companies to be eager to hire there, the first thing they do when they have enough money is leave and move to a HCOL area. And the HCOL areas have a high cost of living because they are desirable.

We're already seeing this in manufacturing. The Chinese middle class developed and now manufacturing moved to Vietnam and India.

Offshoring is just exploiting temporary cost of living arbitrage opportunities. The market is going to naturally fix this as other countries develop and as the skilled labor relocates.