First off.. I have to crib about how all posts by Indians in this concern on slashdot are always mod down. Why is it that an open-forum with such high repute as /. seems to be biased against posts from the other side?
As far as the issue of outsourcing itself goes.. I am not going to say "products" coming out of India are "better" or even "on par" to those which come out of the US. Personally I think Germany is far ahead of both India and the US on that respect. I have for the last year or so been working for a company in India while i take a break from school (UG in Michigan - Computer Science ofcourse), and I have noticed on several occasions that programmers here use techniques which would definately be frowned upon by "gurus" from ANY part of the world. And their communication conduits with their western clients is not close to being adequate. The manager of the Information Services department of my company cant frame a proper sentence in english without any gramatical errors if his life depended on it (which it should if you ask me). This has inadvertently on many occasions resulted in changes having to be made on the software over and over.. on many occasions the same change being communicated many times and mis-interpreted over and over. Has everyone forgotten that HP withdrew some of its operations from India just because of "language barriers"?
But on the other hand you also have some indigenous indian companies with high repute (some which are fortune 500 companies) which have consistently churned out quality code for a long time now.
The fact of the matter is the same wether you take the US or India... some of the work is good some isnt. The only thing that is pulling the jobs to India is the cost, and not everyone in India is totally overjoyed by it.. some of us do feel for our counterparts in the US.. its called humanity. Sorry guys but people here need to make a living too.