Also in the colonies
Don't get your hopes up about leaving UK for Canada as similar things have been happening here as well.
The Canadian corporation I'm currently in decided to go for a bit of Indian off-shore developing at half the price of the local permies, which is also about 20% of what the local IT consultancies charge here but that's another story. We all naturally complained, pointed out this never works or produces the cost savings imagined, were ignored and off we went.
Almost a year later and the experiment's due to finish very shortly thanks to the incredibly awful code produced by this band of muppets on the other side of the planet not to mention the threat of resignation from the poor chap who was practically working 24/7 trying to manage them. We've had 19 year old co-op students who've produced better stuff that this lot (and they're even cheaper!).
My favourite was the brand-new-state-of-the-art system they rewrote that literally ran over 100 (yes a hundred!) times slower than the old supposedly crappy thing we had before.