I think this has more to do with the types of companies that outsource to India. They're not doing it because they view India as a source of talented programmer

I think this has more to do with the types of companies that outsource to India. They're not doing it because they view India as a source of talented programmers. They're doing it because they view India as a large source of cheap, disposable butts in chairs. And guess what? You treat them that way, and that's what they become. I think the moral here is: seeking the best talent from across the world is a worthy goal, but seeking the absolute cheapest labor force possible leads to pain and suffering.