People think this. However the people who actually cost 1/10th are absolute garbage. The people who you might want to hire cost 1/2 as much and work for a company that also want to get paid. By the time you get done you've paid 80% as much for worse work and are dealing with people in a different time zone, with a language and cultural barrier, and misaligned incentives.

Whereas your people want to get as much done as is reasonable so they can stay employed, move up, get raises, improve their cv yada yada the offshoring firm wants to bill you as much as possible without losing your business.