Of course this opinion is based on salient, subjective experience and not to be concluded as empirical.
Back from an extensive, exhausting two weeks of research and supply chain management work in South East Asia. Still fighting a cold that I caught at the end of the trip. 
I was in a couple meetings with some branding professionals who work for local blue chip companies. Their works seem OK, quality comparable to those done by second, third tier agencies in the US. Unfortunately the rate was not competitive at all to be considered a possible outsource partner. One might have bluffed me with the $ currency; the other designer was just not flexible with the creative methodology we are used to in the Western world. Since we can spend similar amount of money to hire talents in the US or Europe, why would we want to risk getting expressions lost in translation or to deal with harsh time difference? The nuance of culture can never be substituted. 
Outsourcing other parts of the creative supply chain is still possible. While the master design should still be procured locally pertain to client's target market, logical design implementation and all pre / post media work can easily be implemented with a decent outhouse model.  
This is temporary good news for us who make a living by creating brand assets at the high level, who balk at cutting price to compete with foreign counterparts with much lower living cost. and bad news for shareholders who seek profit maximization at any possible opportunity.