[HDThoreaun]

> instead of paying for delivered value

Here's your mistake. Companies have never and will never pay for delivered value. They pay the least they can to get an acceptable candidate. The difference is important, and the mentality that companies are paying for delivered value rather than the minimum acceptable amount leads to these mistaken conclusions often.

As for why? Because their goal is to maximize profit of course. Why pay more when less will do? The overseas dev should be paid less because their opportunity costs are much lower, so they accept a lower wage.