I worked in India for one of these BPO companies and know what I'm talking about. If the good engineers from India want to reclaim their status, they need to push back against the flood of H1Bs from these companies.
But instead, the majority of HN (or at least the guys who do more hiring, less coding) keeps pushing for more and more visas when we should be urging Congress to reform the system to allow the talent to come in (with Green Card), while disallowing US companies from using it to lower wages for all US engineers.
I'm sure the hiring manager who posted earlier will say it doesn't affect the decision but the subconscious bias is a real thing.
You're doubly fucked if you have an Indian name and you were born here. White hiring managers automatically assume you're incompetent, and Indian H1B hiring managers are threatened because they fear for their job.
When I was younger, I found it odd that many of family members of mine would Americanize their name. Now, I've experienced the reality of it.
I can't speak if the CS degree has been diluted but I will say there is an enormous amount of extremely undeserved selective bias against Indian people for technology jobs. When US citizens even see Indian names there are less likely to hire (known as name bias).
Again I can't speak for the programs but my Indian friends that went to tech were at the top of their class both in MS and BS. Highly qualified. Extremely humble, ambitious and hungry.
Just my experience (and I run a recruiting software company so I see it at scale).
I compare this to the apathetic divas that I have met from Stanford and MIT (I live in Mass so I have met many MIT grads). I would hire a GT grad over them any day.