A few years ago, we saw the same problems with turnover and lack of experience and hesitancy to say no or admit it when they didn't understand the requirements. It was a small consulting company and our boss wanted to go with them for the cheap rates. I've worked with many great Indian programmers here, and I imagine most of the really good ones in India are much more gainfully employed than those in the small mediocre consulting company we hired. I think the outsourcing boom and bust a decade ago could be largely blamed on companies chasing after a gold rush of cheap talent, assuming there was a virtually endless supply thanks to the large population. In trying to get something for almost nothing, they forgot all sorts of other costs.