Not sure why the author seems to insinuate that the problems he/she has described are somehow specific to India. We had a disaster when we outsourced a large piece of design work to Denmark. We found out that the outsourcer in Denmark was themselves outsourcing chunks of work to Ukraine. Our bias assuming that an expensive Scandinavian outsourcer would be magically better than a cheaper Asian alternative led us astray. A mistake we won't make again. The real solution is doing proper due diligence and proper contract maintenance clauses that ensure the outsourcers goals are aligned with yours. That takes work, not just tossing a spec sheet across the wall.
We outsource successfully. But we have a 1 on 1 relationship with each developer outside our company. So no fooling us about whom it is doing the work.
It takes real work to manage any developer. Its an illusion to think outsourcing solve all the problems. We think of it as simply a recruitment tool really. Not that we hire all the developers we work with. But the outsourcing company is only there to bring in talent as needed. That talent still needs to be managed.
>But we have a 1 on 1 relationship with each developer outside our company
This is the main issue. Not whether the outsourcing is done to India, the Philippines, or even in the US. The model of shipping off your large projects to another company is going to be very problematic.
One on one relations with a good developer are going to be the way to go. A lot of smaller startups that outsource do this.
I don't think he says the problems are specific to India. He is just presenting India as a case study, perhaps because it the most popular outsourcing destination.