Interesting thoughts on outsourcing to Bangalore (may no longer be a good decision for startups)
Totally. Back in 2002, I hired a designer in India for $200/month. After few months it increased by 100 bucks.
Today he is making over $600/month and increasing. Obviously not to take anything away from him(he was a fine designer!)--the power in the Indian job market in last three years has shifted from employers to employees.
Unfortunately, the rest of India will still remain poor due to selfishness. (But I have too many words to write on that).
IMHO, outsourcing to Bangalore was never a good idea anyway. The best talent in India tends to come to the US.