Sure is an interesting thought. None of this is sarcasm: why do US companies deal with the time zone differences and language barriers they won’t need to bother with so much by outsourcing to say, Ireland?

The mechanism is often that they'll actually outsource to someone like Accenture, who have teams everywhere, and whose contract managers will try to get their cheapest viable team onto the contract to maximise their margin. If the buyer can't judge the quality of what they're buying, or doesn't know why the resulting hand-offs, delays, mistakes and rework will cost them more than keeping everything in-house ever would have, they're going to have a bad time.

Er, US companies do outsource to Ireland.

Basically every big tech has large offices and employ a lot of people there.

The limitation is that Ireland is a relatively small country, and most Irish developers are already employed (which is why Ireland end up being one of the main destinations for tech workers being hired from abroad).