What is the "lesson" that business people fail to learn? That Indians are worse developers than "someone like yourself"?
(I don't mean to bump on this, but it is pretty offensive as currently written.)
2. The lesson business people fail to learn is that there's a minimum payment for programmers to get your stuff done, below which the quality drops sharply and that they should not attempt their cost-saving "strategy" because it ends up costing them much more than just paying me to do it. And I am _not_ commanding SV wages btw; $100k a year is something I only saw twice in my long career. So it's double funny how these "businessmen" are trying to be shrewd and pay even less, only to end up paying 5x my wage to a team that specializes in salvaging nearly-failed projects. I'll always find it amusing.
the outsourcing company's goal is not to ship a good product, but to make the most money from you. so while the "indian developer" might theoretically be able to deliver a better product than you, they wont be incentivized to do so.
in practice, there are also many other factors that play into this - which might arguably play a bigger role like communication barriers, indian career paths (i.e. dev is only a stepstone on the way to manager), employee churn at cheap & terrible outsourcing companies, etc.