As a programmer and not a finance guy, I can't understand the cost savings. I'm earning roughly 4k USD per month and our developers in India earn 1k USD per mo

As a programmer and not a finance guy, I can't understand the cost savings. I'm earning roughly 4k USD per month and our developers in India earn 1k USD per month. The output of the entire 12-people team there including managers etc is the same as output of 1-2 people with a 4k USD salary here, but with a much lower quality and maintainability. And that's not counting the hours spent negotiating fixes or giving detailed instructions.