Outsourcing IT jobs to India has been a trend in Norway. It often works very badly, because the companies that do this do very little to counteract the culture clashes. In Norway, we don't like hierarky. The employee will tell the boss, in not very nice words, if he doesn't agree with the boss' ideas. The management is used to this, and if nobody protests, they will think that everything is ok.
We had a case recently, where a big bank spent millions and several years on developing a web based payment system. The Indian IT people worked hard, and delivered a lot of code, but due to their cultural norms they couldn't tell the employer that the entire idea was impossible to implement, and that the programmes they were writing never would work. Or, they probably did, in very polite words framed in a way that the blunt Norwegians did not understand. Due to lack of progress, the bank finally got someone in that told them the truth, and the entire project was scrapped. Could local people have done a better job? Probably not. But they would probably have stopped the project at an earlier date.
We also had a case where the oil company outsourced too much of the IT systems to India, without ensuring there were enough training and security structure. This almost ended with an offshore platform blowing up, because the remote IT guys didn't know that you can't just take down the system to reboot it for several hours in the middle of operation. They were running hundreds of similar systems, from shops to public offices to oil platforms. The guy who caused the crises didn't even know what type of processes he stopped. In Norway, the norm would be that the person/persons responsible for the IT system of that oil rig would have a secure, well paid job, and feel personally responsible that everything worked ok. It is common for them to take part in social activities with the platform operators, drillers, engineers, geologists, etc. By outsourceing to the other side of the world, and treating people as they are machines who should only do the minimum for maximum profit, you also loose the relationship angle. You will save a lot of money, until something bad happens.
This has nothing to do with racism; there are plenty of Indian IT guys, economists and engineers who are working in Norway and doing a better job than most Norwegians. The problem comes when you outsource to save money, without understanding what you are loosing. BTW; we also see the US work policy, where you can loose your job overnight, and have to jump when your boss tell you to, as a big problem. Nothing motivates people as much as feeling appriciated and that their work matters. People who feel that their job is in danger, will keep their head down and look for a way out.
I've heard similar stories from shipbuilders, although they usually outsource to other parts of the world, like Singapore or Poland. In most large project, there is some room for short cuts; if you measure something a few millimeters off, most times it won't matter. The problem is that if you outsource the building of the hull to one side of the world, and the engine to the other side, and they both measure a bit off, you can end up with an engine that doesn't fit the hull. Dialogue and cooperation takes time and resources, but it is very costly if you don't do it.