Companies have been trying that since the 90s, yet the quality of work done by offshore teams is consistently crap. Better to import the entire team to the US, pay them below average wages, make them work 80 hour weeks under the watchful eye of a manager and threaten to fire them (which means deportation) if they dare to complain.
Top engineering grads are excellent and are being paid high wages. Work culture is cut-throat, but talent is comparable to the US.
India's target universities (IITs, IIITs & NITs) produce ~40k new software-engineers every year. Historically, average graduates of these universities end up in FANG jobs after their masters. If not immediately, then within a few years.
We're not talking about the 1 million sub-par engineering grads produced by India every year, most of whom will end up at infosys, TCS or sadly, BPOs. Big-tech only cares about the top 50k.
This the primary group that American new-grads are competing with. Around 20k new Indians get an H1b every-year as part of an OPT (Masters) to H1b transition. For every 1 of them in the US, there is at least 1 back home of the same caliber.
> the quality of work done by offshore teams is consistently crap
This isn't nearly true anymore, and hasn't been for a long time. Especially since everyone is using the same AI tooling as everyone else now.
What is true (in my experience) is that they do tend to lack a sense of ownership and craft. But I think companies care less and less about that all the time.
If you are a good software developer in India then you move abroad. It's not that India doesn't make great software developers, it's just they don't tend to stick around.