Another potential issue is the culturally ingrained resistance of Indians to say no to any request, as I believe it is considered rude by them. If you go to an Indian grocery shop and ask for blankets / jewelry / shark fins / whatever, the owner will say “yes sir, in a moment”, then sends out his boy to some other shop in the neighbourhood to fetch the product and proudly presents it to you. Which is good business practice indeed. However, if the same is applied to subcontracting a SW development project with a fixed impossible schedule, the results may be disastrous. This is just speculation from my part though, I have no concrete evidence on whether or not this is really a factor in outsourcing SW development to India.
Observation on cooperation with Indian subcontractors, pretty much matching my past experiences.