Law departments can choose to use offshore staff or onshore staff of a US firm

The US law firm, Howrey, is “the first AmLaw 200 firm to open an office in India to handle client work” (Am. Lawyer, Vol. 30, Feb. 2008 at 22). The firm’s policy is that clients can choose “whether to use the Indian office to cut costs or to have their work done in the U.S.” How will Howrey describe or estimate the options of projected costs other than with hourly rates?

Does this mean that a law firm ought to explain to clients that the firm will be using offshore resources and give the client the option to proceed that way or not (See my post of June 15, 2005: ethical rule regarding passing on savings.)?