My experience with several Indian teams at different companies bears out the article. They didn't have the same level of education that a developer gets at a good US engineering/CS school. It was more like at a JC level, a few months of Java then turned loose on the clients. The ones I worked with had several years of work experience, but not the depth of knowledge that one would expect from top notch locals. A lot of the savings was lost because we had to manage them more closely with a local liaison and daily code reviews.

OTOH I worked with a Ukrainian outsourcer that had very talented, well schooled, professional, and productive developers. They were also fairly expensive at $40/hour. Good, but not much cheaper.