I'm interning at microsoft this summer and someone asked Ballmer a question about outsourcing. I think the more interesting part was when he asked all the foriegn born interns to raise their hand. I'd say it was 50% if not more. He continued that microsoft was already hiring globally so the real question was did they want development labs in other countries.
That being said I'm sure there are people just as bright in india as there are here. There are also
inexpensive codemonkeys in both countries and if window source is getting sourced to them it'll suck even more.