From an article, "In India, outsourcing moves to the top floor", in the International Herald Tribune on how higher level tasks and not just back-office clerical jobs are being outsourced to India.
N. R. Narayana Murthy, chairman of Indian outsourcing firm Infosys, on the mantra his Western clients follow that helps understand the reason for the flow of higher level design tasks to India:
"Invest where you get maximum returns, source talent from where it is best available, produce where it's most cost-effective, and sell where the markets are, without being constrained by national boundaries."