Spot on. My 10 years’ experience in outsourcing industry is similar[0]. I think of this as another instance of bias against Indian outsourcing. I have seen many instances during my career which seems to indicate that pricing do not correlate with performance.
Your view could also be interpreted as being biased against US based developers (what you refer to as 'Native') and the racism you perceive them to be exhibiting.
In this context I am just trying to explain that price do not necessarily correlates with performance. As far as racism is concerned it definately exists on both sides of the globe.
Meme against Indian is "Indians are taking our jobs by unfair means like working below sustaintable rates".Meme by Indians is "This guy is here to boss us around and confuse us just because he happens to be on the client's payroll."
[0]http://news.ycombinator.com/item?id=3182996