Cost vs. Value
If only everyone's pockets were infinitely deep
Offshore Software Development may seem like a dream come true to non-technical founders. They’ve been quoted amounts in the US that are more than a down payment on a house. Not to mention most people don’t have that kind of money lying around, the likelihood of a return on an investment for a piece of software compared to a house is absurdly low. There is at least a ninety percent chance that piece of software will be worth 0$ in five years. Unless you are outrageously unlucky through a series of freak weather events and your insurance refuses to pay you a dime, cough cough Florida, it is extremely unlikely said house would go to zero.
On the flip side your piece of software may be worth infinitely more than that house one day. Given the risk it may seem like a no-brainer to get the job done cheaper.
It can be done. But failure to validate properly or failure to understand the software development process first will lead to disastrous consequences. At least with a US based team with a good reputation, there is less likelihood of throwing good money after bad if/when the initial MVP turns out to be garbage.