Offshoring: overseas company charges a fraction of the cost to do work onshore employees do, but as a service without commitment to quality or schedule. ThoSe that measure it find they are getting a fraction of the quality, output, and on-time delivery.
With direct overseas hires you have recourse if they don’t perform. Depending on geography and cultural norms, you may get multiple individuals performing behind the scenes but the more prevalent t scenario is multiple paychecks going to the same person. We see this often and have some success dealing with Indian law enforcement to bring charges.