The problem with co-locating teams in cheaper areas is that it drastically reduces your supply of labor. A lot of developers already live in the Bay Area and even more are willing to move there.
Relatively few live in Dayton, Ohio (random example) and even fewer are willing to live there.
The advantage of remote working is you can draw from talent all over the world (or at least all over the US) without having to worry about the fact that a lot of people would be unwilling to live in your particular LCOL area.
Relatively few live in Dayton, Ohio (random example) and even fewer are willing to live there.
The advantage of remote working is you can draw from talent all over the world (or at least all over the US) without having to worry about the fact that a lot of people would be unwilling to live in your particular LCOL area.