> They don't have a single US engineer; only project managers.
That's what I never understood... why not outsource the project managers too? What is it about _project management_ that only onshore Americans can do? Whatever you think of programming, project management is much easier than programming.
Communicating across language, culture and timezone barriers takes some effort. Having a native, local, PM means you delegate that work to the PM, instead of putting it on everyone who needs to interact with the PM.
...and usually, cheaper.
I think the main reason is because the CEO wants someone that they can grab in-person, at any time.
PMs in service firms are usually client facing, or at least client oriented. Having them native puts a native face on the team and keeps the language/culture barrier inside the firm.