Yes. If you hire someone for an excessively cheap rate, it is likely that they might not perform well. For example, assume the salary of a graduate salary in ba

Yes. If you hire someone for an excessively cheap rate, it is likely that they might not perform well. For example, assume the salary of a graduate salary in bay area is $100K. You can usually hire an equally skilled graduate in India at like 1/5th price. But if you instead hire ones that are OK with 1/10 or less, you are just asking for trouble. India has a surplus of engineering graduates, even people who have no business studying engineering get an engineering degree (because let's face it, not everyone is interested in STEM) - so they perform badly as expected. But that shouldn't discount the good ones (even if 10% are good, in absolute terms that's still a big number because of the population).