This is an interesting article about the state of outsourcing in India.
As a result, India has not learned to invent technology products of its own. Barring a few exceptions, the huge amount of venture capital chasing India finds it difficult to be deployed. There is way too much money, way too few deals. Instead, tech-sector VCs are now diverting capital to retail, real estate, hotels and other non-tech sectors.
Out of the millions of folks in India, it's still a small percentage that are in IT or Technology. Until India begins to 'outsource' to itself and discover it's own consumer base, it will always be a back office.