Its all about companies spending less in order to make more. The company I work for is currently undertaking offshore relations. Its not necessarily all about low price, but in order to be the lowest you need to produce at the lowest cost. And that is what offshore business does. Maximizing your profits from low cost production.
Also competition is very key, in order for a company to survive it needs to either lead the way to low spending costs or follow competition companies, in order to win the pricing war. If one company goes overseas and saves a ton of money which in turn lowers their final price to consumers, other companies are going to have a heck of a time catching up to the lower price without affecting their revenue.
BTW walmart was one of the first major companies to outsource a majority of its products and services. That is why their prices are very low. (Fact from Marketing class a couple weeks ago)
