My husband worked for a startup (since gone bankrupt) that had much of its hardware designed outsourced in Bangalore. His bosses had spent months in India, and the general report was that Americans working over there on temporary visas "lived like kings." (They were being paid an American salary but living in India.)
But even professionals in India whose salaries are very low by our standards still have a good standard of living over there, because they have such a large class of desperate poor combined with modern technology (appliances, air conditioning, automobiles, etc.) The poor are willing to work as servants, and even middle class Indians have both cheap help at home *and* the fruits of modern technology.
The problem is that India is *protectionist* - they don't let Americans just move there & get a job. They are *protective* of their own Indian citizens and don't want foreign competition. If we truly demanded that they reciprocate in kind (i.e. allowed a *proportionate to population* number of Americans to work there as we allow H-1Bs), you'd see an end to outsourcing. The Indians scream about any attempt on our part to limit H-1Bs, or cut back on outsourcing to India, but they are very protectionist themselves.