Not the OP but I can likely offer some insight as someone who has had to deal with teams in India: The biggest problem was the employee turnaround rate. Getting a developer, even an experienced one to become fully productive in your organization if you have several or complex products is a process that can take over a year but the turnaround rate was high enough that there we needed to use a very significant amount of resources dedicated to training and keeping communication and quality flowing smoothly because having people who weren't veteran enough to be able to handle themselves and figure out the business case behind the task and user story was a constant state.
I haven't dealt with IBM, but I have been in charge of outsourcing before. Early on we used Indians, but it became expensive so we moved on to the Philippines. Both had the issue you're describing. If you found someone good they would be gone in a few months for more money. I remember arguing with management above me because I wanted to pay a person 40k instead of 35k (I think those were the numbers, it's been awhile) because he was good, and communicated well (another issue). I was overruled and as soon as this person became proficient, and presumably found a better paying job he never showed up again.
Eventually I convinced management that even if we had to pay 2-3x for a competent developer stateside, it was worth the money because of the hidden costs of trying to outsource. The work we were doing required someone to be invested in learning the business and the problems we were trying to solve.
Of course. The point was that outsourcing was 'supposed to be cheap'. The reality is that for many situations it is not cheap, and is less expensive in the long run to pay a dev 100k or whatever the local market rate is instead.
The outsourced guy would eventually figure out that he is been paid way less for more or less same work. so they would move to better paying job. You would need to find a amount which is cheaper then US but way more then local market.
