It was never supposed to really reduce costs.
Like many things that publicly floated companies do, it increased share-price, which contributes to the value of the company, as opposed to doing things effectively which makes a public company more efficient but no more valuable.
It's a trap that many publicly listed companies fall into. Their share value is about perception and being seen to be doing the 'next big thing'. Many of these same companies ploughed millions into failed e-comm projects first time around and never realised much real gain from them in terms of bottom line... but who needs to when it secures a 10% share value hike?
Off-shoring has been wildly successful in terms of doing what the Board wants it to do. It's just that 'being effective' is not part of the requirements.