I have worked in outsourced projects for a big company in the past and our team got the work done. I have since then started my own company and have been working for US customers from India. My current customer is a startup from Philly for which I have been working for about 3.5 years. So, No. Indian outsourcing is not doomed. There are thousands of small companies like mine making customers happy at an affordable price.
And what's with the pictures of a snake charmer and a crowded jeep?