If you make your high-cost employees much more productive with AI, you may not need to reduce per-headcount cost so much anymore. The cultural and language benefits start to dominate the calculation. That said, India will only grow in importance, so I wouldn't be surprised if the team was reinstated in a few years
Might happen soon, might not. AI has so far proven astounding for problems to which solutions are robust to small perturbations -- natural language, visual art -- but code is different.