Think about the last time you were in a bad morale situation at work (for 60% percent of you, that’s right now). How good was your performance? How good a job do you do when you’re not happy with what you’re doing or who you’re doing it for?
I’ll answer for you. You do a mediocre job at best. Most likely, you do a poor job.
If I want someone to do a mediocre job, I’m going to look for the cheapest available option. In programming terms, that means low hourly rate. In today’s environment, low hourly rate means India, China, the Phillipines or some other "low cost country".
Is our morale low because we’re being squeezed for more work at lower wages and because we’re constantly facing the threat of being offshored? Or are we constantly facing the threat of being offshored because our morale is low, and we are doing, collectively, a mediocre job?