In my experience with outsourcing, which has been considerable (now having worked with over 60 coders, designers, writers, etc.), India is good for technical stuff (programming) and data entry, but sucks for everything else. I have not yet found a firm I'm comfortable with retaining full time, so I have some individuals I've worked with in the past that I send work out to inexpensively, though in India, you very often get what you pay for. When I first started outsourcing things, I'd get a kick out of sending out a 10 hour job for $25, but experience has taught me that the people who charge nothing generally deliver just that.
Now I go for mid-range pricing - certainly less expensive than US coders - but not bargain basement by any means.
For some reason, the best foreign designers I've seen are all in Argentina. I JUST started using one that is absolutely phenomenal, and about 1/5 of what US designers charge (and no, I cannot reveal my source, because he's behind as it is
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For content writing, I got sick of $3 articles that were poorly written crap, and ended up finding a great writer here in America that charges $12.50. It's well worth the investment.
Russia also has some solid but cheap programmers.
India also has some inexpensive people who do SEO, but my overall experience and impression has been that India is just as overrun with cheap, crappy, ineffective SEO as the US is. I have not found an Indian-based SEO yet that I would let touch any of my sites, unless it is low value or I'll be using black hat.
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Google isn't as dumb as you think.