I worked for an US based company through a Hungarian company. We were handled like normal employees. I was part of a US based team and reported for the team's manager. The only difference was that I had to go to my Hungarian manager for pay rises. The company got Mid/Senior employees for a Fresh Grad/Junior wage, which is still a great pay in my country. We delivered high quality software in a timely manner. Everybody was happy.

But the company got greedy. They decided they can get engineers even cheaper from other countries and they went for the bottom of the barrel ones from those countries. The new engineers didn't cared about quality, they wanted to merge everything ASAP as the payed for delivered story points by their employers. Madness.

The moral of the story is you always get what you pay for and the only ones who should take offense are the bean counters