Current companies need to learn how to outsource better. I would rather 'lay off' my outsourcers than my core development team. Today's development pipeline has changed so much. I don't think you can have the huge teams anymore unless you have the money to back it up. I believe in a small core team and utilizing…
Not sure if this helps but a friend of mine was working in a studios in Italy and 100% of the models were outsourced from a studio in Ukraine. I think a lot of outsourcing companies are in countries like Poland,Ukraine ecc... where salaries are very low.