I'm based in the UK and regularly work with a contract developer in The Philippines - he is very good at what he does and we both add value to a project - I gather client requirements, project manage and design / implement the UI. I wouldn't be able to do development projects at this level if I had to use contractors or full time staff in the UK, as the cost / risk would be too great. He also relies on someone like me to solicit new work from the west, of good quality.
As the business grows, I'm looking to recruit new roles in the UK (both skilled and unskilled) and turn this in to a solid business. It would be incredibly difficult to grow a business like this without external investment, so pretty much everyone wins; perhaps apart from the finance industry, who in the dotcom boom were the first port of call for growing tech companies.
I was watching an interview the other day - it might have been related to Rasp PI, I'm not sure. This guy was saying it more than possible to work in the tech industry, in the UK and be competitive with elsewhere in the world. A similar role in the US would be more expensive, at 1.5x the average UK pay. While the same role would pay somewhat less in somewhere like India, the gap is closing all the time and while the general quality of candidates in India is good, it's said that they can often lack initiative and approach to problem solving. Basically, creativity is very high in the UK, possibly because there's quite a number of eccentrics, either through nature or nurture - and I'd certainly put myself in this category