ACM has released a report on Globalization and Offshoring of Software. Here is snippet of what the report says about the startups getting benefitted due to Offshoring to India.
It is tempting to view offshoring by startups (whether to an Indian firm, say, or to their own overseas subsidiary) as an unmitigated loss of jobs for US workers. Nevertheless, the real situation is more complicated. Lowering the cost of undertaking a startup could mean that the barriers to entry are lowered, thus encouraging greater entrepreneurship. The jobs created by this entrepreneurship should be counted against those lost by offshoring. So, correctly estimating employment net effect of offshoring in the case of startups is very