A big part of the reason it failed for decades is because of the challenges of remote work. It can be difficult to onboard, you need higher documentation standards, more asynchronous communication processes.
Now many people are gung ho on solving these problems to enable wfh. And I personally view that as indirectly solving a lot of the reasons that international offshoring failed.
Even things like challenges with taxes and local labor laws - there are now brand new companies to address exactly that.
In the end the only barriers will be timezones, and even that the aforementioned async flows seek to address.
People keep saying “they tried outsourcing for decades and it failed, it’s a bluff” as if nothing has changed. Lots of stuff changed like improved video tooling. But perhaps the biggest change by far would be the remote first culture people are trying to build. Pre-Covid, every single FAANG company was office-centric to a degree. Bringing in international teams and integrating them would be effectively impossible. Remote first changes that.
Hacker news has so many wfh zealots you won’t even see much discussion around it since people tire of getting downvoted. But worth noting in my experience talking to IC SWE it’s closer to 70/30 preference for remote but based on online convos you’d think it was 99/1.
I personally quit a FAANG job with FAANG comp precisely because my org went remote first. The culture was alienating, the camaraderie was zero, incident management was a coordination nightmare , documentation for onboarding was a mess, and best of all, all my new teammates were Brazilian but since they were contractors they didn’t do on-call.
Management absolutely plans to replace Americans with much cheaper foreigners but there’s still just so much friction with remote-first. The only reason this big outsourcing push might work this time is because of the number of Americans hellbent on overcoming the challenges of remote work and simplifying their own eventual redundancy.