Every Indian I have worked with in the US has been reasonably competent or better. Every Indian I have worked with remotely from India has been worse than useless. This suggests the hypothesis that the problem is with the work culture, rather than intrinsic to the workers.

And that suggests that IBM is not making more money because IBM's work culture has not adapted well to changes in the global economy. It may be that they have shifted to India workers because they are no longer capable of monetizing their workers to an extent great enough to pay competitive salaries in the US, rather than some factor resulting from their reliance on India. It could also be both, creating a vicious feedback cycle.

In short, problem is that IBM is IBM, not that IBM is full of Indians.