I worked for a company that embraced remote, distributed work long before COVID.
WFH doesn’t automatically lead to outsourcing, but it does move it a lot closer. Once the company dynamic has shifted to all communications and interactions being online, it’s very easy to add someone from a different country as long as the time zones aren’t too far apart and the logistics of employing and paying them aren’t too onerous for HR.
The company I worked for eventually did ramp up foreign hiring and perform layoffs in the US. It was just too to hard to ignore the fact that they could hire 2-3 engineers in foreign countries for the same price as a single engineer in the US in many cases. Or, as they discovered, they could pay 75% of US engineer wages and still be giving someone in a foreign country top-1% compensation for their country. This made for ecstatic, hardworking, loyal foreign employees. It’s hard to ignore situations where you’re paying less and getting more.
It didn’t mean that everyone in the US was laid off, though. Certain talents and specialties were still easier to find here than in foreign countries.
However, I think a lot of people are in denial about how much remote work is setting the stage for a flattening of global engineering compensation. Engineers in lower comp areas will see their salaries rise as they get access to more opportunities. Engineers in higher compensation areas are going to see downward pressure on salaries as they compete on a global stage. The exception will continue to be engineers with the most in-demand skills, who were likely already competing on a global stage.