To be honest I've never been in a situation where there was any such competition. I'm sure it happens on the margins but when you factor in time zone inconvenience, language and cultural barriers it isn't so easy to commoditize consulting. Also good people from anywhere in the world tend to migrate to a few places where this work is done. They don't always stay hanging out somewhere cheap. And good people aren't cheap even if they live in a low cost location. The market price for such people is driven by demanding vs supply rather than the cost of their apartment.