I don’t understand the logic behind why companies will be willing to pay an Indian $160k to work for them in the U.S. but will not be willing to pay the exact same Indian $50k to work from India.
This may have an effect at the margins where the company is contractually or due to some rare product specific reason required to have the person be within the U.S. But the vast majority of H1Bs are working for major tech companies that have massive campuses all over the world.
There are a few different scenarios but outsourcing firms / consulting (infosys, tcs, wipro etc) take up about 1/2 the tech h1bs.
As a body shop you can charge a higher rate and get bigger margins on an on-shore body.
I see your point about faangs and direct hires though. I suppose they must believe that something about being in the U.S. makes those people more productive or their output more valuable.
+this ... it's already the reason there isn't more outsourcing than there already is. Product owners and project managers don't want to work odd hours or have to be embedded in overseas offices to be effective.
This may have an effect at the margins where the company is contractually or due to some rare product specific reason required to have the person be within the U.S. But the vast majority of H1Bs are working for major tech companies that have massive campuses all over the world.