The core problem is that companies from US or Europe contracting Indian agencies do it because of price. It's always more convenient to contract a local agency, in the same timezone.
For that reason, most Indian companies focus on getting the cheapest price and do so at the price of quality.
If you want to do quality work, you'll have to hire more expensive developers and you'll be more expensive. You need to figure out a good positioning because you'll be more expensive that your local competitor, and less convenient than firms closer to your clients. Add to that the low quality image that won't go away until all your competitors start going for high quality development.
For that reason, most Indian companies focus on getting the cheapest price and do so at the price of quality.
If you want to do quality work, you'll have to hire more expensive developers and you'll be more expensive. You need to figure out a good positioning because you'll be more expensive that your local competitor, and less convenient than firms closer to your clients. Add to that the low quality image that won't go away until all your competitors start going for high quality development.