This may be true if Bangalore was right down the street but it isn't its on the other side of the world. When I say standard of living what I mean is there is more money flowing around the US for various reasons, history, infrastructure etc. This gives rise to higher wages more opportunities giving workers more negotiating power. For work that is easily transferred from one location to another such as software development this causes downward pressure on wages in developed countries since this work can be transferred to countries where there is less opportunity and upward pressure on wages where the work is being transferred since not only are they going to be people earning higher wages but they can then transfer then spend the money they earn stimulating their local economy. This doesn't happen overnight though since you have to find people that are qualified to work the jobs you are looking to fill in the undeveloped countries or educate them which all figures into the cost equation for the business. Then you have to take into account other costs of having somebody do work for your business that may be far away such as language, customs, timezones. This is assuming the business owner is in a developed country which is a pretty safe assumption currently since it takes capital to start a business and most capital is currently in developed countries although as globalization continues this will balance out.
