Hiring folks on contract was less expensive due to the lack of US domestic taxes (e.g. social security).
With Section 174 changes, though, that's not the case anymore, and I've spent a lot of time understanding that (because of the 15 year amortization). I won't get on my soapbox about Section 174 stuff and derail this thread. Check it out, though!
I haven't read up too much about 174. Are you suggesting contractor pay can't be written off anymore as well, and thus is less attractive, even at a lower dollar/hour cost, than hiring domestically?
Right now I have team members from Ukraine, Croatia, Montenegro, and Romania in Eastern Europe as well as Chile, Argentina, Brazil, and Mexico in LatAm.
Some countries have more stable talent pools than others - Ukrainian engineers tend to be notably high quality while Mexico can be very hit or miss.