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We found this to be NOT true. Half, at best. But wait.
So it's 1/10 in its heyday, but when you pay someone 1/10th salary in a land of 1/50th salary, that person becomes a target. They look comparatively rich, their house gets repaired, their kids show the signs of an economic bump, etc. So now your guy can get robbed or kidnapped, so you need a driver and protection. And the kids need to go to a different school with a gate. And the spouse needs to get back and forth safely. And then a better house, moving to a gated community or apartment, with more guards. And suddenly you're paying for company housing, schooling, cars, drivers, tutors, guards, cameras/surveillance, cooks, maids, deliveries, and even extended family is moving in for safety.
So it's still a bargain on paper, but then it's just half. They don't mention this because it's hard to sell an idea when 80% of it is eroded.
Your employee or team now works on the other side of the world, with a different culture and management style from what you're used to with Americans, different communications and workflow, and everything's still around the world so it's a day's delay for everything.
The culture and work environment has trained some regions to NEVER admit they don't know something; just nod, smile, and try to figure it out with confidence. Dunning-kruger be damned, sometimes that's not a good way to do something in my field, which is incredibly technical. We can't even educate the locals on risks of bad supply chains (curl|sh anyone? Flatpacks and CPAN and NPM and composer? Find out why these are risks) and doing so with the different "never say you don't understand or you're fired" environment is an added challenge. "Did you check for compliance?" will only ever get a "Yes", even if you don't mention which standard.
So your management - especially in offshores - needs an entirely different mindset and workflow, and you need to have people to check on the compliance and readiness and completeness who will say when it's not ready because they're not gonna be fired for it. This kind of thing surprised us and it will surprise the "I just wanna save money and this guy said 1/10th! " crowd. It's not "you get what you pay for", so don't misunderstand; it's just different. And if you can cope with all the differences and don't freak out that you're not saving so much for same-same work, it's ... an idea. In my case, the offshored staff slowly shrunk until we moved the offshoring to Poland.