The biggest problem would be identifying and contacting the good devs in India. By and large they don't have access to Bay Area hiring managers, and vice versa

The biggest problem would be identifying and contacting the good devs in India. By and large they don't have access to Bay Area hiring managers, and vice versa. There's a lot of money to be made arbitraging this, hence the body shop phenomenon. It could definitely be an interesting problem to solve, but given how scummy recruiting and freelancing sites tend to be, I don't know how you would avoid an ugly race to the bottom.