Countless companies do it at the enterprise level, or even much smaller. A dedicated Indian engineering team can be managed more like an in-house team than rented contractors.

In terms of logistics, I would love to know how to go about this like setting up office in India being a US company etc. Any online resource to tap ? I doubt my local accountant will have any clue.

Can't say about India, but usually goes like ->

US C-Corp or the likes which is owned by the shareholders. Then C-Corp owns 100% of the shares of the company of subsidiary (depending on jurisdiction there maybe legal limitations imposed). Then there is usually an 'agreement' where all IP generated by sub. is owned by parent company, and parent company pays X to sub. company for services (which are usually 100% match to the expenses). Sub. company hires and manages the employees and deals with local taxes, etc.

This of course, depends on size of the companies (both parent and subsidiary) and countries and then there are a bunch of agreements to make sure everything is above board, but pretty much works this way.

source: just had a friend's company that went through doing that, having a Delaware parent company and a subsidiary setup in Portugal.

Thanks for the helpful tip.

There are many companies that do this, from the start even. You get situations where an early employee wants to move back home and to keep him they have him start an eng office back home.