That could also be the case because the business world is slow to adapt to new paradigms. There are not many ingrained best practices yet for distributing devel

That could also be the case because the business world is slow to adapt to new paradigms. There are not many ingrained best practices yet for distributing development teams over the world. The market is moving in this way, but slowly. There is a certain threshold above which it just isn't worth to pay multiple times the salary just for someone that lives closer. It might also be that better collaboration tools need to be developed, or improved, to support this. Or that good tools exist but they are not well-known enough.