I am a developer from India who has had few interactions with some budding developer-entrepreneurs from US. It might not be proper to judge based on these interactions but I felt like something was not right. Their behavior was one of smug feeling of superiority which might be hinting at their insecurity.
This might be an one off case or just an issue with me. But I am interested to know how others feel about the perception that entrepreneurs in US have of Indian developers and how they treat/interact with them.
The second and I believe more sever issue, is cultural differences in the way India and America do business. It is no great secret that as a culture you guys do not like to deliver bad news. I think it is because as a culture you are as well far more respectful than Americans on average. Coming from the American south, I see this all the time. As a culture we in the south had a concept called southern gentry (this culture has died out) part of there culture is that your are considered of a less social status if you are not hospitable and respectful, there are a group of people that see this as a weakness due to a mis-match of cultures. I was part of the first generation in the south that was more culturally compatible with the rest of America so I see the contrast between the two very well.
Anyway I am derailing with back story to get to my point, the point is this aversion to bad news when applied at the management and project management level can be disastrous to a project. Not getting a complete picture of the bad issues can leave people in the dark and hamper their decision making process. 9 times out of 10, when I hear an India outsourcing horror story it has everything to do with the management of the project and nothing to do with the quality of the developers.
You guys experienced a gold rush, when we decided to outsource development to you, some of your business infrastructure and practices where not ready to do so, it is a natural product of two cultures colliding. I would not take it personal, and would recommend trying to look at the human issues involved, something American developers would be well served to do as well.