This is basically another way of outsourcing. Looks good on paper as always. Whether it will really be cost effective - YMMV as many companies found in the past

This is basically another way of outsourcing. Looks good on paper as always. Whether it will really be cost effective - YMMV as many companies found in the past. While the salaries of rank and file ICs will go down, the salary of organizationally key people able to manage the outsourced work - PM/architect/manager - would go up. They would be flown in regularly for important meetings, paid high cost temporary housing while in the town, etc. We had that supposedly key architect on the team who was coming for 2 months every 2 months from abroad and the company was paying for the flying and everything while he was here.